The other key event this coming Thursday, along with the BOE and ECB policy decisions will be the Autumn Statement from UK fin min George Osborne. This interim budget speech has now arguably become as important as the longer-standing version delivered in the Spring.
The statement, delivered to the House of Commons, provides an update on the government’s plans for the economy based on the latest forecasts from the Office for Budget Responsibility which will be published alongside the Autumn Statement on 5 December.
And this one finds Osborne having to tread a fine line between gloating and making the most of the ammunition now at his disposal.
This piece and others in The Telegraph highlights two main areas where he needs to express some caution.
First, although public finances will be looking healthier, they are still a long way from being properly repaired. Government borrowing this year is likely to be lower than the £120bn forecast at the last Budget, but it will still be over £100bn.
The second reason for caution is the growth outlook. In the media, the UK economy has gone from zero to hero in six to nine months. But the underlying reality has not changed significantly. Growth in the British economy is fluctuating around a subdued trend that reflects a “new normal” in the aftermath of the financial crisis.
The Guardian has this to say
The IBT this
We will of course have more of our own thoughts to add as the week progresses and you can also follow the event on twitter.com/hmtreasury #AS2013
