Financial market reactions to the Spring Statement were minimal; government bond yields and equity indices saw limited movements, while Sterling traded slightly weaker against the US Dollar.
The day's earlier news of inflation easing to 2.8% likely dampened reactions to the 2025 real GDP growth forecast being revised down from 2% in October to 1%. Planning reforms were the shinig light however, leading to uplifts in real GDP forecasts for 2026 and beyond.
Alastair Power, Investment Research Manager, on market reactions to the Chancellor's Spring 2025 Statement.