menu_open Columnists
We use cookies to provide some features and experiences in QOSHE

More information  .  Close

Chancellor Reeves needed some sprats to catch those enviable mackerels

1 0
11.01.2025

10 January 2025, 16:09 | Updated: 10 January 2025, 17:35

By David Buik

When PM Jim Callaghan & Chancellor Denis Healey called in the IMF to bail the country out in December 1976; well that was nothing short of a catastrophe!

When Liz Truss threw caution to the wind with her wild and unaudited plans for rejuvenating the economy, her audacious plans rattled the cage of the Gilt market, thus adding credence to Labour’s acerbic allegations that Ms Truss trashed the UK economy.

What happened in October 2022 was nothing short of irresponsible crass stupidity.

Many were supportive of her plans to galvanise the economy, but support from the Bank of England and even her own Cabinet was not sought.

However, though the damage inflicted on the economy was measurable to suggest that the economy was trashed was a little wide of the mark.

Chancellor Reeves currently finds herself in a financial bind, some of it not of Labour’s making.

To be fair, international issues such inflation, the cost of energy and geopolitical strife will have taken their toll on many parts of Europe, resulting in very nervous markets, especially bonds and foreign exchange reacting adversely.

The Pound against the Dollar is at a parsimonious $1.22, its lowest level for 3 years.

10-year Gilt-yield 4.85% and 30-year Gilt-yield 5.41% - up from 3.75% and 4.48%........

© LBC


Get it on Google Play