The Office for Budget Responsibility (a very loose term) passes comment after Hammond Autumn Statement
- There's a significant chance that the government's new fiscal targets will be missed
- Sees 35% chance of new target being missed based on past performance
- New fiscal mandate is much looser, likely to add 0.1% to GDP in 2017/18
- Government has given no information on Brexit negotiation goals
- Any likely Brexit outcome would lead to lower trade flows, lower investment and lower net inward migration
- Expects the fall in sterling to add almost 2% to the level of CPI over next 2 years
- Inflation likely to peak at 2.6% in mid-2018
We're doomed before Hammond's breath from his last comments went cold.
Cable has taken a dive but that's more from the dollar side than disappointment in the statement.