Economics
Pound Reverses Gains as U.K. Lowers Economic Growth Forecast
- Government cuts GDP estimate for next year to 1.4% from 1.6%
- Weak growth undermines fiscal-adjustment process, says CIBC
U.K. May Suffer Weak Sterling for Longer, Says Redeker
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The pound edged lower and gilts rallied after the U.K. cut its economic growth forecast for next year.
Two-year bonds snapped two days of declines after Chancellor of the Exchequer Philip Hammond trimmed the nation’s estimate for gains in gross domestic product to 1.4 percent from 1.6 percent. Hammond, who is delivering his second budget, told parliament the deficit would still be below 2 percent in 2018 and said productivity continues to disappoint.