Britain's budget: What you need to know

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British finance minister Jeremy Hunt announced a string of tax increases and tighter public spending in a tough budget plan on Thursday that he said was needed after the blow dealt to the country's fiscal reputation by former prime minister Liz Truss.

* UK government bond yields, which were already up prior to Hunt's statement, rose further, with the benchmark 10-year gilt yield last up 7 basis points at 3.21%.

* "It's not fantastic news, but it's not as bad as the previous mini-budget that had unbudgeted spending followed by a bond sell-off in panic. This is careful financial conservatism, which is reassuring," said Giles Coghlan, chief market analyst at HYCM in London. * Money market futures pointed to the Bank of England raising interest rates to a peak of 4.53% by August next year, from 4.59% immediately prior to Hunt's remarks.

* Sterling recovered from a brief dip against the dollar early in Hunt's speech and was last at $1.18395, down 0.6% on the day.Compiled by Catherine Evans; Editing by Toby Chopra

 

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