Gate.io: UK Budget Will Bring Negative Risks to the Pound

On March 13, Jinshi Data, Dutch international analyst Chris Turner said that the budget announced by British Chancellor Reeves on March 26 posed a negative event risk to the pound. According to British fiscal rules, it is necessary to balance daily expenditure budgets over the next five years, and the £100 billion fiscal space may have been exhausted, which means Reeves needs to demonstrate actual expenditure cuts. With British bond yields returning to relatively high levels, Reeves will need to cut spending in earnest, otherwise bonds and the pound will face the risk of dumping. But even if she does propose a credible spending reduction plan, the pound may still weaken, as tight fiscal policy should mean loose monetary policy.