Will Sterling Weakness Continue Until ‘Brexit’ Vote?

The transcript discusses the challenges faced by the UK government in maintaining a budget surplus amid lower growth forecasts. It explores the impact of these challenges on the gilt market and borrowing. The Bank of England's interest rate decisions are considered in the context of global economic conditions. The potential effects of Brexit on the sterling currency are also analyzed, highlighting the uncertainty and risks involved.

What was the main challenge faced by the budget due to lower growth forecasts?

• Reduced borrowing needs

• Higher spending requirements

• Surplus in budget

• Increased tax revenue

How did the market react to the budget announcements?

• Muted reaction

• Significant negative reaction

• Strong positive reaction

• Complete indifference

What is the potential impact of a controlled fall in sterling?

• Reduction in trade deficits

• Decrease in inflation

• Stability in interest rates

• Increase in export competitiveness

What is the expected trend for sterling if the UK votes to leave the EU?

• Sterling will remain unchanged

• Sterling will appreciate

• Sterling will stabilize

• Sterling will decline further

Which currency is likely to be most affected by the changes in sterling?

• Japanese Yen

• US Dollar

• Australian Dollar

• Euro