Reeves did not mislead on challenges facing UK ahead of Budget, says OBR official

The Bank of England (BoE) has announced plans to ease capital requirements for high street banks for the first time in a decade, reducing the reserve lenders must hold to stimulate lending to households and businesses. This decision comes amid ongoing discussions about the independence of the Office for Budget Responsibility (OBR) and the implications of budget leaks.

Bitcoin halted its recent decline, and stocks showed a cautious rebound as the global flight from risky assets began to ease. The Bank of England adjusted its estimate for the Tier 1 capital requirements for UK banks to approximately 13% of risk-weighted assets, while also warning of potential risks associated with hedge fund strategies like the basis trade.

Stifel Financial Corp. has announced plans to shut down its UK-based equities trading business, leading to significant staff cuts, as reported by sources familiar with the situation. This decision reflects a strategic pullback in the company's operations in the UK market.

The OECD has projected that the UK economy will experience faster growth in 2026, alongside a decrease in inflation rates. This forecast reflects a positive adjustment in the economic outlook, influenced by recent budget measures aimed at stimulating growth.

The Office for Budget Responsibility (OBR) raised concerns with senior Treasury officials regarding leaks that misrepresented its forecasts ahead of the recent budget announcement. Prof. David Miles, a member of the OBR's budget responsibility committee, highlighted that these leaks were unhelpful and could mislead public perception.

The OECD has projected a slowdown in the UK economy for the upcoming year, attributing this to anticipated tax increases and tighter government spending measures. This forecast aligns with concerns over the sustainability of the UK’s economic recovery amidst rising fiscal pressures.

The OECD has raised its growth forecast for the UK in 2026, attributing this positive outlook to the anticipated impacts of the recent budget measures. This adjustment comes amid ongoing discussions about the UK’s economic stability and fiscal policies.

UK house prices increased by 0.3% in November, reaching an average of £272,998, according to Nationwide, despite concerns surrounding the recently announced mansion tax by Chancellor Rachel Reeves. This rise defied the expectations of economists who had predicted a smaller increase of 0.1%.