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To stem an unexpected spike in the UK’s unemployment rate and trigger the economic recovery post coronavirus (COVID-19) era, British Chancellor Rishi Sunak is on the run to take/signal various measures. In his latest indications, as per The Telegraph, the diplomat is considering national insurance holidays for companies as part of an economic recovery stimulus package in July.

Key quotes

The Chancellor’s focus is on measures to stem the expected spike in unemployment and boost economic growth.

Tax rises that have been under discussion in the Treasury, including raising income tax and VAT, are likely to be delayed until after growth recovers, sources close to the discussions said on Monday.

FX implications

Considering this as an additional hint to the previous day’s signals concerning the July budget, the news seemed to have mostly ignored.