UK PM Burnham Signals Possible 50% Top Tax Rate Increase on July 20, Pound Falls 0.3%

According to Yonhapinfomax, UK Prime Minister Andy Burnham said on July 20 that the government would maintain existing fiscal rules while utilizing "all the flexibility" within them. Burnham did not rule out raising the top income tax rate to 50% from the current 45%, though he stated it was "premature" to discuss such measures now.

The comments weighed on sterling, with the pound-dollar exchange rate declining 0.295% by early afternoon on July 20, and 10-year gilt yields rising 7.76 basis points to 5.0448%.