Taxes, taxes and more taxes plus some spending cuts have allowed the UK Treasury to forecast a cut in gilt-edged bond sales by GBP 20 bln.
The UK budget includes a controversial bank levy, a rise in the VAT and a hike in the capital gains tax. It also includes very conservative growth forecasts in the years ahead. 2011 growth is seen at 2.3%, down from Labour’s sunny 3.0% view.
Cable has bounced sharply in the last 30 minutes or so, now at 1.4760 from a low of 1.4689. 1.4775 and 1.4790/95 are resistance levels on further bounces.
