Over the course of the week, the Chancellor’s ill-received mini-budget has had a rippling effect throughout Britain’s financial markets and services. Earlier this week, markets watched some of the UK’s leading mortgage providers withdraw lending services while yesterday, news hit that the Bank of England being is forced into ’emergency action’ to stop Britain’s pension funds.
Since the mini-budget’s domino effect on financial markets, conservative MPs claim it is unlikely that Britain’s new chancellor will survive the recent market turbulence sparked by his economic plan. One MP added that the prime minister will “struggle to get any legislation” through parliament unless she “changes course”. However, the Treasury minister Chris Philp defended Kwarteng’s tax cuts saying the government would “not reverse its proposals”.
Meanwhile, today is a quiet day for UK data with no key releases scheduled. Tomorrow morning, things resume with mortgage lending and mortgage approvals data for August .
In the eurozone, market watchers will be keeping a close eye on Germany’s year on year inflation rate which will be released at 1pm.
Later this evening the European Central Bank Chief Economist Philip Lane will speak at 6pm.
While the Federal reserve policymakers continue their mission to tame unruly inflation, markets will hear a number of speeches today, the first one will be from president and CEO of the Federal Reserve Bank of St. Louis, Jim Bullard, at 2:30pm UK time.
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