NatWest Cautions on UK's Proposed Debt Rule Changes
NatWest CEO Paul Thwaite advises that changes to the UK's debt rules by Rachel Reeves should be approached with caution to prevent adverse effects such as increased borrowing and mortgage rates. He highlighted the importance of market confidence and the intended allocation of increased financial headroom of up to fifty billion pounds. Meanwhile, NatWest announced a strong financial performance, with reported pre-tax profits rising twenty-six percent in the third quarter.
NatWest's CEO, Paul Thwaite, emphasized that Rachel Reeves' upcoming changes to Britain's debt rules must be balanced, considering their potential impact on borrowing and mortgage rates.
Following Reeves' confirmation in Washington of plans to revise fiscal rules, Thwaite noted that markets would scrutinize the government's intent behind permitting up to fifty billion pounds of additional borrowing.
While acknowledging the recent trend of varying fiscal frameworks in the UK, Thwaite advised that market responses will depend on the government's spending plans.
The statement follows the negative market reaction to unfunded tax cuts under former Prime Minister Liz Truss two years ago.
Reeves announced that changes to spending limits would be made public at the next budget, with the aim of freeing funds for public infrastructure without affecting daily government operations.
Concurrently, NatWest reported a 26% rise in pre-tax profits to one point seven billion pounds for the third quarter, with full-year income projections increased to fourteen point four billion pounds for 2024.
Following Reeves' confirmation in Washington of plans to revise fiscal rules, Thwaite noted that markets would scrutinize the government's intent behind permitting up to fifty billion pounds of additional borrowing.
While acknowledging the recent trend of varying fiscal frameworks in the UK, Thwaite advised that market responses will depend on the government's spending plans.
The statement follows the negative market reaction to unfunded tax cuts under former Prime Minister Liz Truss two years ago.
Reeves announced that changes to spending limits would be made public at the next budget, with the aim of freeing funds for public infrastructure without affecting daily government operations.
Concurrently, NatWest reported a 26% rise in pre-tax profits to one point seven billion pounds for the third quarter, with full-year income projections increased to fourteen point four billion pounds for 2024.
