PBR could damage bond markets, says Jupiter's Hamilton

Jupiter's John Hamilton has warned the Government's proposals as laid out in the pre-Budget report c...

Jupiter's John Hamilton has warned the Government's proposals as laid out in the pre-Budget report could be damaging to sterling and the bond market. The manager of the group's Corporate Bond fund said the Treasury's plan to borrow a record amount to boost the flagging economy has led to uncertainty. "The impact of the fiscal boost, around £20bn, is likely to be relatively modest, but then again preferable to doing nothing. However, the scale and speed of this sudden upward shift in Government borrowing cannot be understated. The gilt market was already braced for a significant increase...