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what's actually going on with the
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British pound the pound has continued to
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fall against the dollar this morning and
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UK government bond yields have ticked
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higher leaving the British economy Under
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Pressure the pound fell below A123 in
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Early Trades and it's currently down
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0.7% against the dollar and 0.6% against
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the Euro meanwhile the day after 30-year
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government bond yields reached their
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highest this Century 10year Government
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bond yields have jumped to
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4.82% their highest since August 2008
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meanwhile the footy 250 has fallen
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almost 4% % since the start of the year
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what does this mean well higher yields
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mean that the government has to spend
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more money servicing debt money that
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can't be spent on public services the
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sell office heightened fears that the UK
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chanler Rachel Reeves will be forced to
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raise taxes or cut spending to meet her
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fiscal rules which require day-to-day
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spending to be met by tax receipts she
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left herself a buffer of 9.9 billion in
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October's budget to meet this pledge but
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many economists think this might have
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already disappeared due to the increase
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in borrowing costs the office for bud
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responsibility will publish new
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forecasts in March which will factor in
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the increase in borrowing costs as well
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as a slower than the expected growth
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since October these forecasts could
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force Reeves to find some extra cash if
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she wants to stay on the right side of
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her fiscal rules when asked whether the
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chancellor will have to cut spending or
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raise taxes again due to the market
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movements the Prime Minister
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spokesperson said I'm not going to get
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ahead of that it's up to the obr to make
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their forecasts in the usual way the
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spokesperson also said when it comes to
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the government's approach to the economy
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we will always put economic stability
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and sound public finances first for more
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of the latest stories on the British
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pound and Market updates head cam.com
