UK’s borrowing costs rise as Reeves’s budget prompts fears of slower interest rate cuts
Markets conclude higher level of public spending could lead to higher inflation, making cuts in Bank of England rate less likely
UK government borrowing costs have risen to their highest level this year as City investors bet Rachel Reeves’s budget would lead the Bank of England to adopt a more cautious approach to cutting interest rates.
The yield – in effect the interest rate – on benchmark 10-year UK government bonds rose by more than 0.15 percentage points to trade above 4.5% on Thursday, before falling back slightly, as financial markets reacted to Labour’s first budget in 14 years.
Continue reading...
Read more at The Guardian
Topics
-
Why mortgage costs are rising despite interest rate cut
Top stories - BBC News - 5 days ago -
UK borrowing costs rise as Reeves’ spending plans unnerve investors
Business - Financial Times - October 30 -
The UK Budget in five charts: Reeves limits BoE space for rate cuts
Business - Financial Times - October 30 -
UK borrowing costs hit post-election high on eve of Reeves’ first Budget
Business - Financial Times - October 30 -
Investors' reaction to Budget 'very different' to Truss, says Reeves's deputy
Top stories - BBC News - November 1 -
FirstFT: US consumers continue to spend, spend, spend
World - Financial Times - October 31
More from The Guardian
-
US and Israel reject ICC warrant for Netanyahu’s arrest – Middle East live
World - The Guardian - 11 minutes ago -
Matt Gaetz withdraws his nomination to be Trump’s attorney general – live
World - The Guardian - 10 minutes ago -
Ukraine claims Russia fired intercontinental ballistic missile at Dnipro
World - The Guardian - 5 hours ago -
First close-up image of a star outside Milky Way shows supergiant in ‘cocoon’
World - The Guardian - 3 hours ago -
British lawyer is fifth person to die in suspected methanol poisoning in Laos
World - The Guardian - 58 minutes ago