Pimco Says UK Government Unlikely to Change Fiscal Rules

The video discusses the impact of rising global yields on countries with fragile fiscal balances, particularly the UK. It explores the likelihood of the UK government adjusting fiscal variables to meet fiscal rules and the potential for spending cuts or tax increases. The analysis includes a look at the yield curve and market expectations for fiscal credibility in the UK.

What has been the trend in global yields over the past few months?

• They have decreased significantly.

• They have remained stable.

• They have fluctuated unpredictably.

• They have increased.

Which country is mentioned as having a fragile fiscal balance?

• Japan

• United Kingdom

• United States

• Germany

What is the likely action the UK government might take to meet fiscal rules?

• Increase spending

• Ignore fiscal rules

• Cut spending or raise taxes

• Lower taxes

What is the market's perception of yields at the front end of the yield curve?

• They are low and unattractive.

• They are high and attractive.

• They are risky.

• They are unattractive.

What does the market expect regarding the UK's fiscal credibility in the coming quarters?

• It will remain the same.

• It will decrease.

• It will be unpredictable.

• It will increase.