FX.co ★ FTSE 100 Steady as Investors Digest Budget

The FTSE 100 remained close to the 9,600 mark on Wednesday, oscillating between slight gains and losses, as investors digested the budget statement from Finance Minister Rachel Reeves alongside an unexpected leak. In an unusual incident, the Office for Budget Responsibility inadvertently released its forecasts online prior to the official announcement. This early disclosure revealed that the chancellor has more than doubled her fiscal leeway from £9.9 billion to approximately £22 billion, exceeding market expectations of just under £17 billion. Tax revenues are anticipated to increase by £26.1 billion by the fiscal year 2029–30, driving the tax burden to an unprecedented 38% of GDP. Regarding the economic outlook, the OBR anticipates an average growth rate of 1.5% over the next five years, while reducing its productivity forecasts. Inflation is expected to reach 3.5% this year, slightly higher than the March projection of 3.2%, with next year's forecast adjusted from 2.1% to 2.5%.