DAVY VIEW

This week will see Ireland’s Budget 2027 fiscal parameters set, with a headline package of more than €10bn likely. However, we note some reasons that this amount overstates the likely impact of Budget 2027 on the Irish economy. In the UK, Andy Burnham is forming a new Labour government against a backdrop of a weak labour market, and we expect mildly cooling inflation pressures for June. The main euro area deposit rate is likely to stay unchanged this week, but an increase in September is increasingly likely.