LONDON (Sputnik) – UK Conservative Prime Minister Boris Johnson’s decision to slash foreign aid by 0.2 percent could be defeated in Parliament next week after lawmakers.
5/25/2021 6:35:43 AM GMT | By Dhwani Mehta
“We need to focus on driving a strong economic recovery,” the UK Finance Minister Rishi Sunak said following the release of the country’s public sector finances data.
“Government is continuing comprehensive package of support,” he added.
“British public borrowing totaled 31.696 billion pounds ($44.93 billion) in April, the first month of the new financial year, down from 47.315 billion pounds a year earlier when the public finances first felt the full impact of the COVID pandemic,” Reuters reports, citing the official figures on Tuesday.
Market reaction
GBP/USD is closing in on the 1.4200 mark, adding 0.26% on the day, as the US dollar continues to lose ground on the session amid weaker Treasury yields.
UK’s Sunak: Economic growth in March is a promising sign of things to comeNEWS |
5/12/2021 6:18:52 AM GMT | By Dhwani Mehta
“Despite a difficult start to this year, economic growth in March is a promising sign of things to come,” the UK Finance Minister Rishi Sunak said after the economy shrank 1.5% in the first quarter of 2021.
He added: “As we cautiously reopen the economy, I will continue to take all the steps necessary to support our recovery.”
Additional comments
“Return to offices a decision for employees and employers.”
GBP/USD reaction
Upbeat remarks from Sunak and a late bid caught on the encouraging UK GDP data appear to aid the rebound in GBP/USD from 1.4107 lows.
GBP/USD defends 1 4100 after UK Q1 GDP, BOE s Bailey, US inflation eyed fxstreet.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from fxstreet.com Daily Mail and Mail on Sunday newspapers.
FTSE 100 up 0.12% or 8.43 points to 7,047.73
And the FTSE 250 index is up 0.39 per cent or 86.78 points to 22,472.68.
12:33
Ambrose Crofton, Global Market Strategist at J.P. Morgan Asset Management, said:
Today’s MPC decision to keep policy unchanged comes as no surprise as the economic recovery is still in its early days and monetary policy has already been somewhat prescribed for the coming months. The Bank did acknowledge that the economic outlook had improved markedly since its February forecast round, raising its forecasts for growth. Indeed, the punchy cocktail of a reopening economy and excess consumer savings means that the UK economy should be set for a party for the remainder of the year.