Tomorrow, George Osborne, the Chancellor of the Exchequer in the United Kingdom, is set to release his latest budget. The result has been mixed for the UK pound for now, but many expect that more weakness is probably ahead for the sterling.
George Osborne‘s grand austerity plans have failed to boost the UK economy, and they haven’t actually helped reduce the deficit, either. His new budget isn’t likely to offer huge changes to what’s been offered in the past, though. On the one hand he has conservatives calling for more tax cuts, and on the other hand he has the opposition calling for more government spending in the name of stimulus.
What’s more likely to happen is that he will ask the Bank of England to increase their efforts. This is likely to mean a looser monetary policy — and a weaker pound. With Mark Carney taking over for Mervyn King in the summer, and with concerns about a triple-dip recession, there isn’t much anyone can do beyond take steps to weaken the pound and hope it prompts economic growth.
At 14:43 GMT GBP/USD is down to 1.5095 from the open at 1.5108. EUR/GBP is down to 0.8566 from the open at 0.8578. GBP/JPY is down to 143.7000 from the open at 143.9465.
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