UK finance minister Hammond speaking in parliament 18 July
- high debt levels leave Britain "vulnerable to future shocks"
- if markets lose confidence in UK fiscal policy they would re-price lending to the UK
- we would be doing a huge disservice to taxpayers if we created the conditions that caused the cost of that debt to rise
Hammond is currently under a lot of pressure to lift the pay cap on public sector pay.
- underlying economy robust amid record employment
- inflation is hurting but exports, investment plans are up
- over time the UK will adjust to weaker pound
Not hoping for any significant rise just yet then.
GBPUSD a tad lower at 1.3020 and EURGBP nudges up to 0.8879
UK fin min Hammond says UK economy will get used to weaker pound