How the financial markets reacted to the UK budget (and why they matter)

By Alex Dryden, PhD Candidate in Economics, SOAS, University of London

Rachel Reeves’s second budget landed in an unusual fashion. Before she delivered it, most of the key details had already been revealed accidentally by the Office for Budget Responsibility.

This meant many observers – including the financial markets – had an unprecedented preview of the chancellor’s announcement. But what are these markets that governments are so mindful of when they come up with economic policy, and why does it matter what they think…

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