Schroders chief economist David Rees said the UK budget gives households limited
relief from the cost-of-living squeeze but is insufficient to change the
economic outlook. He said resilient growth and rising inflation support roughly
two Bank of England rate hikes, with the first possibly as soon as next week.
Rees warned reduced fiscal headroom leaves the government more exposed to
further upside in gilt yields. He also noted signs of US overheating and that
Europe is entering a potentially volatile election period.
