Good morning. There has been no new meaningful data released this week that might prompt a change in perceptions of the British economy: no inflation update, no unemployment figures, no OBR forecast. Nevertheless, chancellor Rachel Reeves is facing what many observers see as a crisis.
UK borrowing costs have risen throughout the week, and yesterday the pound fell to a 14-month low against the dollar. The chancellor has an “iron grip” on the public finances, a Treasury spokesperson said on Wednesday. The fact that this kind of response was deemed necessary, and that it had no discernible impact on the mood among investors, is one measure of the situation the government is in.
