File image of Chancellor Rachel Reeves. Picture by Kirsty O’Connor / Treasury.

The Chancellor is about to squeeze demand through a sizeable fiscal tightening, which reduces inflationary pressure.

Next week’s UK budget is shaping up to be a decisive moment for monetary policy.

And according to ANZ Research, the measures the government is preparing will push the Bank of England toward cutting interest rates again - starting as soon as December.

Why? Because the budget is set to be disinflationary.

That’s the core message from ANZ, which says the government is "poised to tighten fiscal policy" in its 26 November autumn budget, with the deficit currently running at 5.3% of GDP and the Treasury still committed to achieving a balanced day-to-day budget by FY2029-30.

To meet those fiscal

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