Reported today on City AM
For the full article visit:
Welcome to City A.M.’s budget day live blog. Please refresh your browser for live updates.9.42am Welcome to budget dayChancellor Rishi Sunak will deliver his first budget today, just 27 days after being handed the keys to the Treasury.It will come on the same day that the Bank of England has cut its Bank Rate by 50 basis points 0.25 per cent to cope with fears of a coronavirus-related downturn.Read more: Coronavirus: Bank of England slashes UK interest rates to 0.25 per centRead more: FTSE 100 jumps after BoE interest rates cut to tackle coronavirusThe cut has left the official interest rate at its lowest point in the Bank of England’s 325-year history.The Bank’s Monetary Policy Committee said: “Although the magnitude of the economic shock from Covid-19 is highly uncertain, activity is likely to weaken materially in the United Kingdom over the coming months.”The announcement sent the FTSE 100 benchmark index up by almost two per cent after the announcement, before losing momentum. It’s up just 0.63 per cent as of 9.37am.Stocks have suffered a series of shocks over the past three weeks in the wake of coronavirus uncertainty, leading the FTSE 100 to lose more than 15 per cent since 26 February.Read more: Budget 2020: How Rishi Sunak will tackle coronavirus and hike spendingRead more: Coronavirus: Government prepared to give NHS ‘whatever it needs’Sunak is also expected to inject fiscal stimulus into the economy today to counteract fears of a downturn.On Sunday, he said: “There are policy levers we can take to ease the short term burden on business’ cash flow.”These are businesses we think are viable, sustainable and we think have a bright future, but are going to have a temporary period of disruption.”That’s where our interventions should be focussed.”
source
Be First to Comment