Ebury analyst Matthew Ryan said Britain’s public finances are under pressure and the government has almost no room to further loosen policy. According to Jin10, Ryan said UK government debt is about 100% of GDP, while Britain is also one of the developed economies with the highest borrowing costs.
He added that any sign the new chancellor plans to relax fiscal rules, even by a small amount, could weaken market confidence in Britain’s fiscal discipline and trigger another round of selling in UK assets. Analysts said the government needs to balance economic growth stimulus with fiscal credibility, and that uncertainty over fiscal policy may continue to affect the pound and the UK government bond market.
UK Fiscal Space Is Limited, Ebury Analyst Says Rule Relaxation Could Hurt Market Confidence
2026-07-28 08:04:53
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