Markets conclude higher level of public spending could lead to higher inflation, making cuts in Bank of England rate less likelyBusiness live – latest updatesUK 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…
Source link : https://www.theguardian.com/business/2024/oct/31/uks-borrowing-costs-rise-as-reevess-budget-prompts-fears-of-slower-interest-rate-cuts
Author : Richard Partington Economics correspondent
Publish date : 2024-10-31 17:24:51
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UK’s borrowing costs rise as Reeves’s budget prompts fears of slower interest rate cuts
