Sterling Swings Lower on Early OBR Report

2025-11-26 12:21 By Agna Gabriel 1 min. read

The pound briefly climbed to $1.31929 before slipping to around $1.314 after the OBR accidentally released key budget figures ahead of Chancellor Rachel Reeves’s speech.

The report showed a larger-than-expected £22 billion fiscal buffer, compared with the £15 billion forecast, but also weaker growth and higher inflation projected for 2026.

The early release sparked sharp market swings, as such data normally appears only after the budget.

The OBR detailed tax changes including higher gambling duties, a levy on properties over £2 million, and a 2-point rise in dividend taxes, adding £26.1 billion in revenue by 2029-30.

Income tax and national insurance thresholds will remain frozen until 2030-31.

Confusion over the premature release, along with higher inflation forecasts, led traders to scale back rate-cut bets and left both gilts and sterling under pressure.

The OBR apologized, saying the link went live “too early” and that it has opened an investigation.



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