The pound saw plenty of support last week as global economies battled with a number of issues, from gas restrictions to ‘technical recessions’. This morning, sterling remains stronger against the euro and the dollar.
The UK’s data calendar is full this week, with PMI figures due today, house prices tomorrow and the Bank of England’s latest interest rate decision on Thursday. Markets have been largely expecting another 25-basis point hike, however, there are now signs that a more aggressive, 50-basis point hike could be on the cards. This would be the largest hike for 27 years.
As the race to become the next UK prime minister continues, Rishi Sunak has vowed to reduce the basic rate of income tax from 20% to 16% by the end of the next parliament, in what he has called the “largest cut to income tax in 30 years”. Many have criticised this as being too slow.
In a landmark deal between Russia and Ukraine, the first ship carrying grain left a Ukrainian port this morning. Russia has been obstructing Ukrainian ports since February, so it is hoped that this deal will finally alleviate the global food crisis.
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