After a difficult start, Labour's election campaign will get a much-needed boost on March 16th when Gordon Brown delivers his ninth budget. The chancellor of the exchequer brushed aside this week a warning from the IMF about a hole in Britain's public finances. Mr Brown's officials at the Treasury may have to scratch around, but they will find some cheap giveaways for him to serve up to the voters. More important, the chancellor will be able to direct attention to Labour's record on the economy, arguably its strongest card in the election. But although Mr. Brown will radiate optimism about the economic outlook, his bullishness will be overshadowed by a looming threat. The Bank of England kept interest rates at 4.75% on March loth, but the financial markets are betting on a rise to 5.0% this spring. Of 50 economists recently polled by Reuters, 26 expect a rise in the second quarter.
展开▼
