Chancellor Osborne reaffirms determination and need to push UK to budgetary surplus

Chancellor George Osborne reiterated his iron will to return UK's budget from deficit to surplus suggesting that is to be the need of the hour. He stressed that the need is more acute in the face of several risks from wider global economy, which includes slowdown in China.

He countered new labour party leader James Corbyn's anti-austerity stance by suggesting that UK will be better prepared to handle risks arising from global economy by making UK a budgetary surplus country. He wants to be better prepared when the storms come.

According to the determined Chancellor, government just can't spend money that it hasn't got.

Though in the latest budget, deadline to achieve surplus was pushed back by one year, determination seems to be strong enough to push through that vision.

This pose another question - How prudent will be monetary tightening by Bank of England (BOE) - at a time when fiscal side is in contraction, inflation is nil and interest rate is already at 0.5%?

While UK short term debt is likely to stay in demand, rate hike is likely to come at a much later date from BOE.

Pound seems to be getting the idea - currently trading at 1.517 against Dollar.