DAVY VIEW

As expected, Chancellor Rachel Reeves delivered another difficult UK Budget. However, the details of the Budget were unexpectedly leaked prior to her speech. Nonetheless, the UK bond market’s response to the Budget has been favourable thus far despite the backloaded nature of the most significant revenue-raising measures. The forecast for GDP growth has been revised up to 1.5% for this year and homebuilding is still expected to ramp up.