UK finance minister, Rishi Sunak, will unveil more updated measures to the government's jobs support scheme

UK

As the end of the furlough scheme draws near, Sunak's plan of trying to step back on fiscal intervention is slowly breaking as he is required to announce another support package to aid jobs, businesses amid the virus situation in the UK.

If anything, this just underscores the severity of the economic situation at hand and that does not bode well for the overall outlook as we look towards Q4 and Q1 next year.

Today, Sunak is expected to announce that the government will pick up a greater proportion of workers' wages, possibly two thirds, under the new jobs scheme - current offer is only 22% for those affected by Tier 2 restrictions.

Adding to that, there are reports that he might also expand the eligibility for business grants, which are currently offered only to businesses that are forced to close altogether.

More fiscal support will be welcome news for the BOE but the fact that the government is being "squeezed" into doing so perhaps tells us that the economic climate may be much bleaker than anticipated and that itself could also prompt hastier action by the BOE.