Investors are bracing for a busy day on Wednesday in the UK with the release of the Chancellor’s Spring Statement and February inflation data. Both could influence investors views on monetary policy.
The Office for Budget Responsibility is expected to cut its GDP growth forecast for this year from the 2 per cent forecast in October to closer to the 1 per cent forecast by economists polled by Reuters.
Chancellor Rachel Reeves has said she will not raise taxes. However she is expected to announce further cuts to public spending, following a £5bn reduction on welfare.
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