The government’s position has become so precarious – and its credibility with the markets so low – that even waiting another two weeks to announce the ‘medium term fiscal statement’ became too big a gamble. By moving the announcement forward to today, Jeremy Hunt is removing the uncertainty of creating a two-week gap between the end of the Bank of England’s intervention in the gilt market and the government’s announcements. And markets are tentatively responding well. Ten-year gilt yields started dropping considerably when the market opened at 8 a.m., from 4.3 per cent down to just under 4.1 per cent. You can follow along with hourly updates via The Spectator’s data tracker here.
That is what Hunt has to tackle today: that hubristic attitude that saw markets lose their confidence in the government’s ability to practice fiscal restraint
But this good news does little to offset the ugly realities that are going to come to light when the Chancellor makes his announcements today.
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