Yahoo Finance Pound holding steady after Jeremy Hunt delays autumn budget
The pound has lost some gains and the cost of government borrowing edged marginally after chancellor Jeremy Hunt confirmed the planned Halloween fiscal statement would be delayed once more to November 17.
Sterling slid from $1.14 but is still 0.8% ahead at $1.1562, and up 0.3% versus the euro at €1.1541
The yield (or interest rate) on 30-year bonds rose as much as 14 basis points to 3.81% after the announcement was pushed back from its original date of Monday.
Read more: Rishi Sunak pushes back crucial autumn budget to 17 November
While markets have calmed since a reversal of the mini-Budget and Liz Truss's departure, investors are still keen to see the final numbers.
Prime Minister @RishiSunak & Chancellor @Jeremy_Hunt have agreed the Autumn Statement will be delivered on 17 November with an @OBR_UK forecast. It will contain the UK’s medium term fiscal plan to put public spending on a sustainable footing, get debt falling & restore stability. pic.twitter.com/3wiSAU1iaK
— HM Treasury (@hmtreasury) October 26, 2022
Chancellor Jeremy Hunt said he is willing to make “politically embarrassing” choices and insisted a “short two-and-a-half week delay” to his statement is the best course of action.
Hunt told broadcasters: “I’ve demonstrated in the short time that I’ve been chancellor that I’m willing to take decisions very quickly and I’m willing to make choices that are politically embarrassing if they’re the right thing to do for the country, if they’re in the national interest.
“Now we have a new prime minister and the prospect of much longer-term stability for the economy and the country.
Read more: FTSE slips further as fiscal plans delayed again
“In that context a short two-and-a-half week delay is the best way we will make sure that it is the right decisions we take.”
The delay adds uncertainty to markets but so far investors are not panicking.
As I said on @skynews a moment ago, so far markets seem sanguine about the decision to delay the fiscal statement. No panic. Normally you’d take that for granted but not after the past few weeks… pic.twitter.com/tTGjKxO7L3
— Ed Conway (@EdConwaySky) October 26, 2022
However, the uncertainty is unhelpful for the Bank of England, which will make its interest rate decision on 3 November.
According to a read-out from a meeting of Rishi Sunak’s first Cabinet, the “chancellor said that he and the prime minister fully support the independent Bank of England in their efforts to return inflation to target. The chancellor has discussed these plans with the Governor of the Bank of England ahead of their policy decision next week”.
“The chancellor stressed that economic stability and credibility was the essential foundation for all other policies. Without this basis, we could not deliver long-term growth, nor support for individuals."
Watch: Jeremy Hunt announces 'Halloween Budget' has been delayed to mid November
