Bond market turmoil eases as Treasury minister says ‘no need’ for government intervention – business live
Lib Dems say chancellor should stay and make emergency fiscal statement and also cancel planned national insurance hike
- Reeves’ fiscal rules non-negotiable in face of bond sell-off, deputy tells MPs
- Liz Truss sends legal letter ordering Starmer to stop saying she crashed economy
- Rachel Reeves says she has ‘iron grip’ on finances as borrowing costs surge
The drop in the pound may make it trickier for the Bank of England to lower interest rates as soon as hoped in 2025.
Two two quarter-point cuts to Bank Rate are priced in for this year, bringing rates down from 4.75% to 4.25% by December, but the odds on a cut as soon as February have dipped slightly this week.
“With sterling weakening, that meant growing questions were asked about whether the Bank of England could cut rates as fast as expected.
“Indeed, investors dialled back their expectations for rate cuts this year by four and a half basis points compared to the previous day, so they now only see 48.5 basis points by the December meeting.
Whilst lower consumer confidence continues to impact High Street footfall and expenditure, our value-for-money offer and the quality of our freshly-prepared food and drink position us well to meet the headwinds we expect to see in the year ahead, and we remain confident in the significant long-term opportunity for growth.”
Continue reading...
Read more at The Guardian
Topics
-
The bond market threw a wrench into this company's turnaround. We may need to dump it
We're at a crossroads with the stock.CNBC - 3h -
UK government seeks to soothe bond market nerves after borrowing costs soar
Treasury vows to stick to its fiscal rules and says gilt markets functioning ‘in an orderly way’Financial Times - 4h -
China’s bond market is screaming deflation
Investors to Beijing: C-, must do betterFinancial Times - 9h -
Has the bond market turned against Rachel Reeves?
Rising UK borrowing costs raise risk that chancellor will have to impose tighter fiscal policy as soon as MarchFinancial Times - 1d -
US imposes sanctions on senior Hungarian government minister
US treasury accuses Antal Rogán, a close aide of leader Viktor Orbán, as key to ‘system of corruption’. The United States has imposed sanctions on a senior member of the Hungarian government for ...The Guardian - 2d -
Biden administration eases sanctions on transitional Syrian government after Assad ouster
The Biden administration has eased sanctions blocking transactions with the transitional Syrian government following the ousting of longtime dictator Bashar Assad. The move marks a gesture of ...The Hill - 2d -
U.S. to Ease Aid Restrictions for Syria in Limited Show of Support for New Government
The move reflects Washington’s wariness about the U.S.-designated terror organization that leads the country.The Wall Street Journal - 3d -
British factories suffer winter chill as government ‘dampens confidence’ – business live
Live, rolling coverage of business, economics and financial markets as 2025 starts with trepidation over new US administration’s trade policies, and global manufacturing sector struggles. Nine out ...The Guardian - Jan. 2
More from The Guardian
-
California fires live updates: death toll likely to rise; Biden announces federal funding for fight against blazes
President says federal government will pay 100% of costs for 180 days for California fire response; one person reportedly killed in Palisades fire. Full report: wildfires continue to rage in Los ...The Guardian - 22m -
Venezuelan opposition leader María Corina Machado ‘kidnapped’, allies say
Leader reportedly freed after being ‘violently intercepted’ having left hideout to lead protest against Nicolás Maduro. Allies of Venezuela’s most influential opposition leader, María Corina ...The Guardian - 1h -
Biden hails Jimmy Carter’s strength of character in eulogy at state funeral
Service marks end of 39th president’s lying in state at ceremony attended by all five living presidents. Jimmy Carter funeral – latest news Jimmy Carter’s six-day farewell to the nation ...The Guardian - 4h -
Elon Musk heaps praise on AfD’s Alice Weidel during live talk on X
X owner and far-right politician appear to agree on everything, as Musk faces accusations of meddling in German election. Elon Musk has praised the co-leader of Germany’s far-right Alternative für ...The Guardian - 2h -
Greenland’s prime minister calls for calm after Trump comments
Pro-independence Múte Egede says Greenland must stay unified after becoming centre of US-Denmark spat. Greenland’s prime minister has called for unity, urging citizens not to panic, after being ...The Guardian - 6h
More in World
-
Venezuela’s Opposition Leader, Maria Corina Machado, Is Freed After Being Detained
During her detention, an aide said, Maria Corina Machado “was forced to record several videos.” She has garnered enormous support for her opposition to Nicolás Maduro.The New York Times - 14m -
California fires live updates: death toll likely to rise; Biden announces federal funding for fight against blazes
President says federal government will pay 100% of costs for 180 days for California fire response; one person reportedly killed in Palisades fire. Full report: wildfires continue to rage in Los ...The Guardian - 22m -
Venezuelan Opposition Leader Is Briefly Detained as Regime Tightens Crackdown
María Corina Machado was seized by President Nicolás Maduro’s regime after she appeared at a protest in Caracas.The Wall Street Journal - 23m -
The Pitt review – real-time medical drama puts Noah Wyle back in ER
There are interestingly knotty issues covered in the series, set over one hellish shift, but soapy acting and thinly written characters ultimately derail. The reunion of ER showrunner John Wells, ...The Guardian - 32m -
Beto and Ndiaye see off Peterborough as Everton’s caretakers pick up slack
Another new era for Everton, this one promising stability, and another managerial search is under way after the sacking of Sean Dyche . The Friedkin Group, the club’s new owners, were at least ...The Guardian - 42m