BoE’s Greene: UK budget may significantly affect spare capacity outlook

The significance here is the linkage itself: fiscal policy is being framed as an input into the BoE's read on economic slack, not as a separate conversation. That matters because spare capacity is a core determinant of how the MPC calibrates its stance, so budget choices could shift the policy debate without any change in the data. The open question is whether this stays a general caveat or becomes a concrete revision to the Committee's capacity assumptions.