UK public sector borrowing reached a four year high in September, touching £20.2billion. The timing of this release comes at a difficult time for the UK government, who are currently drawing up the autumn budget that will be released in November. Public sector net debt has now reached a total level of 95.3% of GDP, levels that has been unheard of since back in the 1960’s. Already brewing concerns for the UK government regarding fiscal issues, economic growth, and unemployment levels. With debt increasing for the UK, what’s the labour governments next move? Well, many market experts suggest that tax will have to be raised for a second time in 2025. If we see taxation levels increase for employers and business, will this diminish or slow down economic growth and lead to layoffs? It is likely to happen and with a slower performing economy and more people out of job, this would lead to more headache for the government and GBP. The next few weeks will be important for the future of UK’s future economic path and can lead to volatility to GBP, which has already seen fluctuations.
This afternoon Canada will release their inflation rate levels, which are expected to rise from 1.9% to 2.3%, breaking above its target rate of 2% in September. Oil prices surging in September and marking an end to Canada’s retaliation tariffs on US, leading to Canadian companies paying more for imported goods from the US.
GBP/EUR 1.1498 GBP/USD 1.3372 GBP/AED 4.9141
GBP/AUD 2.0645 GBP/CHF 1.0603 GBP/CAD 1.8808
GBP/NZD 2.3409 EUR/USD 1.1615 GBP/ZAR 23.1911