Ebury analyst Matthew Ryan says UK public finances are under strain and the
government has little room to ease policy. With debt around 100% of GDP and
among the highest borrowing costs in developed economies, any hint that a new
chancellor will relax fiscal rules — even modestly — could undermine confidence
and prompt another round of selling in UK assets. Analysts say the government
must balance growth support with fiscal credibility; ongoing fiscal policy
uncertainty may continue to weigh on sterling and gilts.
