Fidelity's response to the Chancellor's Budget

Commenting on Chancellor's budget and its impact on the UK economy, Trevor Greetham, Director of Asset Allocation, Fidelity International said:

"With no new spending or policy changes of any macro significance markets are likely to focus on the new eye-watering Government debt projections on the basis of fairly upbeat long term assumptions.

Some will argue gilt yields will have to rise but with the deflationary effects of spare capacity, property prices falling and the Bank of England ready to implement more quantitative easing if necessary, I'd expect any strain to be borne by Sterling with yields staying low.

I'm still long government bonds but underweight sterling where possible in my multi-asset funds.

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