Sterling Got a Quick Breather After Starmer’s Sweet Talk about Reeves
Morning pulls the pound back out of the cold front, nudging up 0.2% to $1.3670 as Sir Keir Starmer assured the market that Rachel Reeves will stay on her throne as Chancellor “til the next election.”
Wednesday’s Tug‑of‑War in the Markets
The day before, a 1% drop had the pound looking a bit gloomy when Starmer hesitated to promise Reeves’ job security. At the same time, UK gilts got the short end of the stick—suddenly swooping from a well‑plumped day to its cheapest borrowing costs since the world’s financial crisis. The panic echoes the Liz Truss “mini‑budget” chaos of 2022.
What Analysts Are Saying
- Nigel Green (deVere Group CEO): “We’re seeing a repeat of Truss’s 2022 fiasco—a reckless policy tumble that shook market faith. This time it’s the government flipping a policy again, and people’re questioning our fiscal grip.”
- Andrew Wishart (Berenberg Bank economist): “Investors might have saved Reeves’ seat by liquidating sterling assets. The market didn’t react immediately to the mishap over the disability benefit budget, but the lack of reassurance from the PM sent assets flying.”
The Crystal Ball of a Chancellor
Reeves has become the poster child for keeping daily spending tight with tax revenue. If you’ve ever wanted a cunning tax‑policy cheerleader, she’s the one.
Stay in the Loop
Want real‑time updates on this scoops from the UK government? Click Subscribe right below to keep your finger on the pulse of sterling.
- Daily market snapshots
- Behind‑the‑scenes commentary
- Exclusive insights from our journalists
