The markets reacted somewhat unfavourably to the Office of Budget Responsibility’s (OBR) economic forecasts published in today’s Budget.

The new, downgraded growth forecasts, are as follows:

• 2016: 2.0%, down from 2.4% in November’s autumn statement
• 2017: 2.2%, down from 2.5%
• 2018: 2.1%, down from 2.4%
• 2019: 2.1%, down from 2.3%
• 2020: 2.1%, down from 2.3%

Tobias Davis, head of corporate treasury sales at Western Union Business Solutions (UK) Ltd, said: “George Osborne delivering his eighth Budget as chancellor started on the front foot, underlying his, and the OBR’s concern around financial market turbulence, and the cocktail of global risks facing the UK economy. Pending the EU Referendum, growth in 2016 is to marginally slow to 2% from 2.2% in 2015.

“Mr Osborne admitted that he failed to meet the rule of seeing debt fall as proportion on GDP, however maintained his target on achieving a budget surplus of 10.4 billion in 2019/20 by increasing employment and lowering government spending to 36.9% by the end of the decade.

“The pound has construed the Budget deficit data, lower growth estimates and the inflation forecast of just 0.7% in 2016, somewhat unfavourably. Sterling was on the back foot walking into the statement, and although it doesn’t typically trade around the policy announcements, it has furthered its loss on the day.

“The FTSE 100 index is pretty much unchanged, falling 0.2% during the Budget speech. As the market digests the news, we will be privy to the US Federal Monetary Policy announcement at 6pm GMT, which will drive direction through this evening.”