Mitsubishi UFJ: If the UK fiscal plan is 'reliable', the pound may pump

Jinsandata News on October 30th, Mitsubishi UFJ Financial Group stated that if the fiscal plan is credible, the pound may react positively to the budget announced by the UK Labour Party government tonight. Analyst Harupani of the bank said that it is expected that the UK Chancellor of the Exchequer, Rives, will announce tax increases to help alleviate the budget deficit and increase government spending. The government will change its self-imposed debt rules. This will increase borrowing capacity and significantly increase long-term investment. Ultimately, this will have a positive impact on the supply side of the economy and should increase the potential growth rate of the economy over time.