Pound gains a cent and gilt yields drop as new chancellor prepares new measures to calm markets
- Labour says Hunt’s decision to bring forward full overhaul of mini-budget ‘evidence of panic’ – UK politics live
Jeremy Hunt is trying to prevent a rout in the bond market by rushing out new tax and spending measures today.
It’s an extraordinary situation, explains ITV’s Robert Peston:
High energy prices, elevated inflation, rising interest rates and global economic weakness mean the UK economy is expected to be in recession until the middle of 2023.
“Folding in weaker growth momentum, significantly tighter financial conditions, and the higher corporation tax from next April, we downgrade our UK growth outlook further and now expect a more significant recession.”
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