Bank of England Governor Andrew Bailey thinks that Britain is suffering a worse economic performance than its rivals, as Brexit coupled with the sharp drop in workforce size since the pandemic weighs on the economy. UK GDP remained around 0.7% below its pre-covid level, where as Eurozone and US economies are around 2.1% and 4.2% above.
Bailey also suggested that the effects that the recent disastrous mini budget had on the economy, have now been reversed but could have damaged the UK’s reputation.
Chancellor Jeremy Hunt is set to release his budget to Parliament today. The package is set to include tax rises worth £25bn and spending cuts of around £35bn to plug the £60bn funding hole and reassure global markets that the UK is a trusted trading partner.
Rishi Sunak has suggested that there won’t be a trade deal formed with the US in the near future like was suggested with our former government. After meeting with Joe Biden, Sunak said that the relationship with the US remains very optimistic but that it could take years to form any deal
US retail sales rose 1.3% in October, the fastest pace for 8 months and a sign that consumers are still spending even as the FED try to slow the economy. Despite this, Fed Vice Chair Michael Barr stated that the US economy was likely to take a hit as they try to counter inflation.
The pound remained rangebound yesterday moving between 1.1830 and 1.1940 against the dollar, and 1.1390 and 1.1445 against the Euro.