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 vol

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.