LONDON – The pound is pushing into negative territory after chancellor Philip Hammond delivered the government’s first major economic update since Brexit – the Autumn Statement.
As of 2.25 p.m. GMT (9.25 a.m. ET), sterling is trading lower by roughly 0.4%, breaking below the $1.24 mark again. Sterling traded lower all morning, before poking its head into positive territory when Hammond first spoke, before dropping sharply.
Here is the chart:
The statement – Hammond’s first as chancellor – was something of a continuity announcement, with no huge surprises. Hammond announced a focus on improving productivity through infrastructure, creating the biggest government investment programme in over a decade, pledging to spend £23 billion ($28.5 billion) on technology, housing, and transport infrastructure.
During Hammond's opening remarks, he once again delivered the assertion that Britain is the "fastest growing major economy," in the world, but warned that the decision to leave the EU makes it more important than ever to address the weaknesses present in the British economy.
Hammond presented the latest forecasts from the independent Office for Budgetary Responsibility, showing that it expects the British economy to grow 1.4% in 2017, down from 2.2% in previous OBR forecasts thanks to "lower investment and weaker consumer demand," driven by the Brexit vote. He noted that this is equivalent to the IMF's forecast for growth in Germany next year, and better than forecasts in Italy and France.
You can read Business Insider's full coverage of Hammond's statement here.