Coronavirus: Why has the interest rate on UK debt fallen to record lows?
4 years, 10 months ago

Coronavirus: Why has the interest rate on UK debt fallen to record lows?

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The interest rate on traded UK government debt has fallen to its lowest ever level, amid rising anxiety about the economic impact of the global Covid-19 outbreak. This chart shows the yield on 10 year bonds over the past 40 years and how today’s rate sets a new record low. Reductions in the official short-term Bank interest rate tend to reduce traded UK government bond yields. open image in gallery 10 year government borrowing costs have hit record lows in America this week, with Treasury bonds dipping below 1 per cent for the first time ever.

Market Interest Bond Rate Sign Low Yields  breaking  bond  fallen  uk  yields  rates  record  rate  market  sign  coronavirus  debt  lows  interest  low

History of this topic

UK interest rates to fall more slowly than expected after Budget – OECD
1 month ago

UK interest rates to fall more slowly than expected after Budget – OECD

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy UK interest rates will fall …

Bank of England cuts UK interest rates again despite modest budget-related inflation spike
2 months ago

Bank of England cuts UK interest rates again despite modest budget-related inflation spike

Associated Press  

LONDON — The Bank of England cut its main interest rate by a quarter of a percentage point to 4.75% on Thursday after inflation across the U.K. fell significantly, relieving some pressure on borrowers who have faced elevated mortgage and loan costs. Though inflation has fallen below the bank’s target of 2%, Governor Andrew Bailey cautioned that interest rates would …

Bank of England widely expected to hold interest rates despite big US Fed cut
3 months, 2 weeks ago

Bank of England widely expected to hold interest rates despite big US Fed cut

The Independent  

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Bank of England lowers its main interest rate by 0.25%, to 5%, its first cut in over 4 years
5 months, 1 week ago

Bank of England lowers its main interest rate by 0.25%, to 5%, its first cut in over 4 years

Associated Press  

LONDON — The Bank of England has cut interest rates for the first time since the onset of the COVID-19 pandemic in early 2020 as inflationary pressures in the economy have eased. “Inflationary pressures have eased enough that we’ve been able to cut interest rates today,” said Bank Gov. Ensuring low and stable inflation is the best thing we can …

UK inflation falls to Bank of England's 2% target rate for first time in nearly 3 years
6 months, 3 weeks ago

UK inflation falls to Bank of England's 2% target rate for first time in nearly 3 years

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Inflation in the U.K. returned …

UK inflation lowest in 3 years. Prime Minister Sunak makes it a focus in election call for July 4
7 months, 2 weeks ago

UK inflation lowest in 3 years. Prime Minister Sunak makes it a focus in election call for July 4

Associated Press  

LONDON — Inflation in the U.K. fell sharply to its lowest level in nearly three years in April on the back of big declines in domestic bills, official figures showed Wednesday. “While it’s clearly good news headline inflation is back to normal levels, it is disappointing that price pressures haven’t fallen further and that measures of services inflation are proving …

UK fell into recession at the end of 2023 as economy takes center stage in runup to general election
10 months, 3 weeks ago

UK fell into recession at the end of 2023 as economy takes center stage in runup to general election

Associated Press  

LONDON — The British economy fell into recession at the end of 2023 for the first time since the onset of the coronavirus pandemic, as output shrank more than anticipated in the final three months of the year, official figures showed Thursday. The quarterly decline followed a 0.1% fall in the previous three-month period and highlights how the economy has …

Like the US Fed, Bank of England is edging toward interest rate cuts — but not quite yet
11 months, 1 week ago

Like the US Fed, Bank of England is edging toward interest rate cuts — but not quite yet

Associated Press  

LONDON — Just like the U.S. Federal Reserve, the Bank of England is edging toward cutting interest rates — though not quite yet. “We need to see more evidence that inflation is set to fall all the way to the 2% target, and stay there, before we can lower interest rates,” he said. Bailey also said the bank was keeping …

UK inflation falls by more than anticipated to 2-year low of 3.9% in November
1 year ago

UK inflation falls by more than anticipated to 2-year low of 3.9% in November

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Inflation in the U.K. as …

UK bond market rallies at sharpest pace in Europe amid interest rate hopes
1 year, 2 months ago

UK bond market rallies at sharpest pace in Europe amid interest rate hopes

The Telegraph  

The Government’s cost of short-term borrowing has fallen at the fastest pace in Europe today after the Bank of England’s chief economist raised hopes of interest rate cuts. The yield on two-year UK gilts, which are sensitive to moves in the outlook for interest rates, has dropped by eight basis points today to 4.61pc, its lowest level since June and …

Bank of England keeps main UK interest rate at 15-year high of 5.25% and cautions over oil prices
1 year, 2 months ago

Bank of England keeps main UK interest rate at 15-year high of 5.25% and cautions over oil prices

The Independent  

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Bank of England keeps main UK interest rate at 15-year high of 5.25% and cautions over oil prices
1 year, 2 months ago

Bank of England keeps main UK interest rate at 15-year high of 5.25% and cautions over oil prices

Associated Press  

LONDON — The Bank of England kept its main interest rate unchanged on Thursday at the 15-year high of 5.25% and indicated that borrowing costs will likely remain at these sort of elevated levels for a while, especially if oil and gas prices increase sharply because of the Israel-Hamas war. In a statement, the bank’s nine-member Monetary Policy Committee indicated …

UK homeowners get some respite as inflation falls by more than anticipated to a 15-month low
1 year, 5 months ago

UK homeowners get some respite as inflation falls by more than anticipated to a 15-month low

Associated Press  

LONDON — Inflation in the U.K. has fallen by more than anticipated to a 15-month low, official figures showed Wednesday, a development that offered struggling households hope that interest rates won’t rise as much as feared over the coming months. Although Dave Ramsden, deputy governor at the Bank of England, said inflation is still “much too high,” analysts said the …

UK central bank hikes rates like Fed amid financial turmoil
1 year, 9 months ago

UK central bank hikes rates like Fed amid financial turmoil

Associated Press  

LONDON — The Bank of England extended its battle against inflation Thursday, announcing an 11th consecutive interest rate increase despite concerns about the economic fallout from troubles in the global financial system. Britain’s central bank boosted its key rate by a quarter-percentage point to 4.25%, a day after the U.S. Federal Reserve approved a similar move to tame price increases …

ALEX BRUMMER: Britain's debt interest bill is robbing taxpayers
2 years, 1 month ago

ALEX BRUMMER: Britain's debt interest bill is robbing taxpayers

Daily Mail  

Before the financial crisis crashed the public finances and the economy in 2008-09, Labour Chancellor Gordon Brown liked to point out that his management of the public finances helped to cut the interest rate bill on the national debt to negligible levels. The Office for Budget Responsibility reckons the debt interest bill in the current 2022-23 fiscal year more than …

UK central bank intervenes in market to halt economic crisis
2 years, 3 months ago

UK central bank intervenes in market to halt economic crisis

Associated Press  

LONDON — The Bank of England took emergency action Wednesday to stabilize U.K. financial markets and head off a crisis in the broader economy after the government spooked investors with a program of unfunded tax cuts, sending the pound tumbling and the cost of government debt soaring. The Bank of England said it would buy long-term government bonds over the …

Bank of England will buy UK bonds at ‘whatever scale’ necessary to halt crash
2 years, 3 months ago

Bank of England will buy UK bonds at ‘whatever scale’ necessary to halt crash

CNN  

London CNN Business — The Bank of England said Wednesday it would buy UK government debt “on whatever scale is necessary” in an emergency intervention to halt a bond market crash that it warned could threaten financial stability. “This repricing has become more significant in the past day — and it is particularly affecting long-dated UK government debt,” the central …

Bank of England urged to call emergency rates meeting next week to rescue pound
2 years, 3 months ago

Bank of England urged to call emergency rates meeting next week to rescue pound

The Telegraph  

The Bank of England has been urged to raise interest rates as soon as next week to help the pound from further weakening. Meanwhile, UK bond yields were on the rise, with the 10-year gilt yields seeing their biggest one-day surge on record in Bloomberg data. Deutsche Bank analysts said there are "very strong signals" that the market is no …

Interest bill for UK's £2.4tn debt mountain more than DOUBLES to record £19.4bn in June
2 years, 5 months ago

Interest bill for UK's £2.4tn debt mountain more than DOUBLES to record £19.4bn in June

Daily Mail  

The government plunged deeper into the red today as interest on the £2.4trillion debt mountain hit an eye-watering new record. was more than double the same month last year, and a peak since records began in 1997 The debt interest costs in June dwarfed all previous monthly figures since records began in 1997 Mr Zahawi said: 'We recognise that there …

UK reports back-to-back declines in GDP, first time since start of pandemic
2 years, 6 months ago

UK reports back-to-back declines in GDP, first time since start of pandemic

Live Mint  

Official numbers released on June 13 showed that Britain's Gross Domestic Product unexpectedly dropped in April, raising fears of a dramatic slowdown just three days before the Bank of England reveals the amount of its latest interest rate response to the spike in inflation. The economy shrank by 0.3 percent in April after falling by 0.1 percent in March, the …

Interest on government borrowing jumps to December record amid soaring inflation
2 years, 11 months ago

Interest on government borrowing jumps to December record amid soaring inflation

The Independent  

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Bank of England hikes interest rates to combat surging inflation
3 years ago

Bank of England hikes interest rates to combat surging inflation

CNN  

London CNN Business — The Bank of England is hiking interest rates in an effort to fight surging prices even as the Omicron variant engulfs the United Kingdom and threatens to put the economy into reverse. The central bank’s Monetary Policy Committee said Thursday that it would raise interest rates from the record low of 0.1%to 0.25%,the first such move …

UK inflation at 10-year high sets stage for interest rate rise within weeks
3 years, 1 month ago

UK inflation at 10-year high sets stage for interest rate rise within weeks

CNN  

London CNN Business — Britain looks set to become the first major economy to hike interest rates since the Covid-19 pandemic began after inflation data showed prices rising at the fastest rate in a decade. “The upside surprise in the October inflation data supports our expectation that the Bank of England will hike the bank rate by 15 basis points …

Safety is the key as interest rates continue to fall
4 years, 6 months ago

Safety is the key as interest rates continue to fall

Live Mint  

Yields enjoyed by fixed income securities’ investors are headed lower. Vanilla economic theory suggests that lower interest rates spur growth as producers get funds at lower cost, which aids the production of cheaper goods. Falling interest rates simply means that the segment of the population dependent on passive, fixed income—often senior citizens, will fall short of their required returns. At …

UK interest rates cut to tackle coronavirus threat to economy
4 years, 9 months ago

UK interest rates cut to tackle coronavirus threat to economy

CNN  

London CNN Business — The Bank of England has slashed interest rates to a record low and launched other emergency measures as part of a dramatic and coordinated UK response to limit the economic fallout from the coronavirus. The central bank said in a statement Wednesday that while the magnitude of the shock from the coronavirus remains “highly uncertain,” economic …

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