MNI BRIEF: No Borrowing Forecast Update With UK Fiscal Package

The UK Treasury's hefty fiscal package which looks set to be unveiled next Friday will come without updated projections on borrowing or the economic outlook from the official forecaster, the Office for Budget Responsibility.

The OBR said that it has not been commissioned to produce a forecast and so is not expecting to publish an update alongside any measures that might be announced next week. Its head, Richard Hughes, had previously stated it could produce the forecasts if required but it has not been asked to do so.

The Debt Management Office, which usually sets debt issuance in line with the OBR's projections, has yet to state whether it will update its remit.

The government has announced that it plans to introduce an Energy Price Guarantee capping typical household bills at GBP2,500 for two years from October 2022, just over GBP1,000 less than assumed by the Bank of England in its August projections.

Friday's event is expected to flesh out some details and add additional tax reductions. (See MNI INSIGHT: Energy Package Too Late To Sway Sept BOE Decision)

The yield on 10-year UK government bonds has risen to 3.17%, the highest level in 11 years.