UK job retention scheme set to be extended to September – The Telegraph

Early Monday morning in Asia, The Telegraph came out with the news suggesting the extension of the UK’s state bankrolling of wages until the end of September.

Key quotes

Ministers are expected to extend the state bankrolling of wages until the end of September, albeit at a reduced rate of 60pc, while also topping up the pay packets of staff brought back to work on a part-time basis.

Changes to the furlough scheme could be announced by Rishi Sunak, the Chancellor, as soon as tomorrow.

The move is part of a package of ­reforms to wean Britain off furloughing as the Covid-19 lockdown is eased, with the Government desperate to get staff back to work.

FX implications

While UK Chancellor Rishi Sunak is expected to announce the measures on Monday, the news is mostly confirmed considering the government’s efforts to ward off criticism of their aid packages. The news added to the GBP/USD pair’s earlier strength based on the UK PM Johnson’s lockdown guidance. The Cable currently takes the bids near 1.2422 by the press time.