Thanks for your reply stagecoach. Standard & Poor's have already warned on sterling's possible downgrade...another reason bond yields have increased. Not sure of the impact of the expected bond issues to help savers, as last time the limit was 10k for only pensioners . But it will have an impact. Cheers DYOR
longshort, Not sure that more PPI provisions are required yet , as large provisions were set against recently to hopefully provide enough to last till PPI end date. Asperger1 would know...
Also the sterling crash has forced up bond yields by 40-50%. Good news for pension deficits but bad for our £45Bn/year interest of government debt. Think this article is overly pessimist....but agree that some concerns are valid. We will soon see. DYOR please. Cheers all
Hello mick-b Yes disappointing set of public finances figures but fully expected. With George Osbornes Deficit Reduction Program now scraped or scaled back by Hammond, and Sterling now in free fall due to Brexit. The International Bond Markets will now take a very dim view of the future health of the UK public finances. which will inevitably lead to higher funding costs on the International Bond Markets and a possible further downgrade to the UK credit rating.
The big worry for UK Banking Sector now is that Chancellor Hammond will try and address this problem of higher funding costs by issuing a large raft of Government Backed Savings Bonds Issues, at preferential Interest rates to what the Banks pay. He will probably announce these measures in the next months Autumn Statement which will result in huge outflows of savers money from UK the Banks and Building Societys crippling their ability to lend future new money. ATB
In other UK events, data from the Office for National Statistics showed Britain's public finances had a bigger-than-expected deficit in September of £10bn, up 14.5% from the deficit in the same month a year ago. Economists had expected a deficit of £8.5bn. The data comes ahead of Chancellor Philip Hammond's Autumn Statement next month. "September's public finances figures set the tone for a fairly disappointing set of fiscal forecasts likely to be revealed in the Autumn Statement next month," according to Capital Economics. "But this won't prevent the Chancellor from scaling back the pace of austerity."
IMO - With increased debt levels to follow. Still on a positive note, could be far far worst should Corybn unleash his £500bn Keynesian borrowing monster. DYOR Cheers/GLA
Well don't forget they are experts they have a 50 ...50 chance of being right .If wrong they should be constantly reminded of there ramblings.Buy the way the pictures indicate no time to wash after school or shave.
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