UK's Budget was big and bold - Nomura

Analysts at Nomura explained that this week’s UK Budget was big and bold.

Key Quotes:

"The Chancellor decided to spend rather than save this year’s better deficit news – in spite of warnings that weaker productivity would damage growth and the fiscal outlook further ahead.

Revisions saw GDP growth being marked down by an average of 0.4pp in the coming years and, as a result, larger deficits from 2019-20 onwards.

Moreover, there were plenty of big-ticket announcements that added to the deficit looking further ahead.

The aggregate cost to the Treasury of the measures Mr Hammond announced was some 0.3% of GDP in 2018-19 and 0.5% the following year. Gilt issuance stands broadly unchanged this year but could rise by a total of over £50bn in the five years from 2017-18 to 2021-22 thanks to increased spending and slower economic growth."