According to Jin Ten Data, Rabobank analyst Jane Foley stated that as British fiscal issues resurface, the pound may further decline against the euro. Prime Minister Starmer refused to support Chancellor Reeves in Parliament.
The government is forced to make concessions on welfare reform to appease rebellious Labour MPs. Foley points out that the funds saved from welfare reform by Reeves have already disappeared. The Bank of England may cut interest rates two more times this year, while the European Central Bank has signaled that its rate-cutting cycle is nearing an end.