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MNI UK Budget Review Oct 2024: More Inflationary Than Expected

We look at the main takeaways from the Budget and what they mean for inflation, monpol, the remit and politics.
MNI (LONDON)
  • We look at the main takeaways from the Budget and what they mean for inflation, monetary policy, the remit and from a political standpoint.
  • Larger-than-expected minimum wage increases and employer NI contributions are likely to be inflationary in our view, making it more difficult for the BOE to deliver sequential cuts. We look at how much more the two policies combined could cost some businesses.
  • The fiscal remit for FY24/25 was broadly in line with expectations (albeit with a longer skew than expected) but medium-term forecasts point to around GBP110bln additional gilts to be sold over the next 4.5 years.
  • Ahead of the release next week of the DMO's agenda for its quarterly consultation meetings we set out our expectations for issuance.

For the full document see: UK_Budget_Review_2024_10.pdf

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MNI (LONDON)
  • We look at the main takeaways from the Budget and what they mean for inflation, monetary policy, the remit and from a political standpoint.
  • Larger-than-expected minimum wage increases and employer NI contributions are likely to be inflationary in our view, making it more difficult for the BOE to deliver sequential cuts. We look at how much more the two policies combined could cost some businesses.
  • The fiscal remit for FY24/25 was broadly in line with expectations (albeit with a longer skew than expected) but medium-term forecasts point to around GBP110bln additional gilts to be sold over the next 4.5 years.
  • Ahead of the release next week of the DMO's agenda for its quarterly consultation meetings we set out our expectations for issuance.

For the full document see: UK_Budget_Review_2024_10.pdf