2016.07.2204:51:00UTC+00Briferendum Aftermath Series: Philip Hammond Gives First Ever Direct Hint of Fiscal Support

The United Kingdom’s chancellor of exchequer gave first ever direct signal that the government is considering to provide fiscal stimulus in the wake of the referendum vote on June 23rd that led to the majority of the voters opting for Brexit.

After coming to power, Britain’s new Prime Minister Theresa May had indicated that there could be some radical shift from the policies of the previous chancellor George Osborne, who name became synonymous with austerity. Before the referendum according to Osborne’s policies, the United Kingdom would have balanced its budget by the end of the decade.

The new chancellor, Philip Hammond who previously rejected the idea of an emergency budget in the wake of an exit, said that there would be an opportunity for the government in the autumn statement to reset the fiscal policy. He said, “to reset fiscal policy if we deem it necessary to do so in the light of the economic data that will emerge over the coming months showing us what is happening in the economy post the referendum decision”.

Autumn budget statement is held in November every year and for anybody trading in FTSE 100, GBP pairs or Gilts is a must watch this year.