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As per the latest report from the UK Times, British Chancellor Rishi Sunak is expected to shelve plans for tax rises in his March budget amid mounting concerns about the “colossal” scale of the economic fallout from coronavirus.

The news further mentions the recent £4.6 billion support package announced by the British policymaker to help businesses after the third national lockdown while saying, “He also refused to rule out extending the furlough scheme, which pays 80% of people’s wages, beyond April. However, a senior government source said that it was the “wrong time” for tax rises and they were likely to be shelved.”

Fx implications

GBP/USD is yet to respond to the news while waiting for the markets to get active around 1.3570. The cable has recently been pressured amid the coronavirus (COVID-19) woes. Recently, Japan is said to have found another variant of the virus having similarities to the British strain of the covid. The news should have ideally weighed on risks but AUD/USD, the risk barometer in Asia, remains mildly positive around 0.7750 by press time.

Read: AUD/USD: Bulls and bears jostle around mid-0.7700s amid US stimulus hopes