Autumn Budget Risks Dovish Repricing of Pound

The British Pound has seen gains due to an upward revision in UK Q2 GDP, which exceeded both prior estimates and Bank of England (BOE) forecasts.

However, BBH's Elias Haddad cautions that the upcoming October 28 Autumn Budget could shift attention away from monetary policy, potentially leading to a dovish repricing of BOE rates.

The expected tax hikes and spending cuts in the budget may reduce the need for BOE rate increases, making the Pound more vulnerable to a dovish BOE repricing.