Markets Support Biggest Budget Squeeze in 50 Years
There are lots of Britons who won’t like it but…
Markets have given the coalition government’s uber-tough emergency budget the thumbs up.
Bloomberg: Fitch, which said June 8 that the U.K. faced a “formidable” fiscal challenge, yesterday said the “ambitious” plan ensured Britain would keep its AAA credit rating. The pound and gilts rose for a second day after Chancellor of the Exchequer George Osborne outlined the spending reductions and tax increases to lawmakers in London.
So the pressure of the money markets is relieved for the time being; next stop – political hell as the cuts bite into voters…
“Will it cost our coalition some popularity? Possibly?” Cameron said, without a hint of irony.
In the meantime, both coalition and voters will be praying the economy holds up.
