UK’s borrowing costs rise as Reeves’s budget prompts fears of slower interest rate cuts

Source link : https://www.mondialnews.com/2024/10/31/uks-borrowing-costs-rise-as-reevess-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 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

Copyright for syndicated content belongs to the linked Source.

The post UK’s borrowing costs rise as Reeves’s budget prompts fears of slower interest rate cuts first appeared on MondialNews.

Author : MondialnewS

Publish date : 2024-10-31 17:46:51

Copyright for syndicated content belongs to the linked Source.