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I confirm my intention to proceed and enter this websiteAs Britain struggles with the increase in borrowing costs and the weakening pound, Rachel Reeves finds herself standing in the limelight as the new finance minister. The economic challenges posed this week are likely to alter Reeves’s plans for expenditure moving forward.
(10-year gilt yield, source: LSEG)
Profound increases in gilt yields coupled with the impending elections in the US greatly enhanced volatility within the market. The three- day graph of the pound presents a startling image showing the highest decline for two years closely matching the 2022 “mini-budget” which resulted in Liz Truss bowing out as Britain’s prime minister.
(GBP/USD Daily Price Chart, Source: Trading View)
Despite the volatility, this week’s market fluctuations have been milder, with no signs of the institutional pressures that prompted the Bank of England’s emergency bond purchases in 2022. Darren Jones who is Reeves’s deputy assured Parliament that the bond market is stable. “There is no need for any emergency intervention,” he stated.
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