IMF chief sees steady world growth in 2025 January 11, 2025 Kristalina Georgieva said the US economy was doing "quite a bit better" than expected.
Reeves vows ‘action’ to meet fiscal rules amid rise in borrowing costs January 11, 2025 Rachel Reeves has said she will “take action” to meet her fiscal rules following turbulence on the gilt markets. Increases in the Government’s borrowing costs have sparked concern that the Chancellor will be unable to meet her debt and spending targets, requiring either tax rises or deeper spending cuts when she delivers a fiscal statement [...]
Rachel Reeves says fiscal rules ‘non-negotiable’ during bid to boost ties with China January 11, 2025 Rachel Reeves vowed to stand by her “non-negotiable” fiscal rules, as her mission to China was overshadowed by further turbulence in the gilt markets. Visiting bicycle-maker Brompton’s flagship Beijing store on Saturday, the Chancellor declined to give a running commentary on the financial markets in the UK, but said the rules she set for herself [...]
Pound sterling sinks and gilt yields rise after US jobs report January 10, 2025 The pound plummeted against the dollar while gilt yields came under further pressure after new figures revealed the continued strength of the US economy. According to the latest report on the US labour market, the world’s largest economy added 256,000 roles in December, accelerating from November and well ahead of economists expectations. Unemployment, meanwhile, unexpectedly [...]
Mortgage rates to rise on back of bond market turmoil January 10, 2025 Gilt yields influence the mortgage market through swap rates, the main benchmark for mortgage lending in the UK.
Chancellor Rachel Reeves looks for pro-growth measures amid market tumult January 10, 2025 Earlier this week the yield on the 30-year gilt hit its highest level since 1998 while the 10-year gilt rose to its highest level since 2008.
Bank of England’s Breeden backs ‘gradual’ interest rate cuts January 9, 2025 A Bank of England rate-setter said she expects to back “gradual” interest rate cuts this year due to continued uncertainties about the economic outlook. Speaking in Edinburgh, Sarah Breeden said inflation had come down faster than expected throughout 2024, which will enable the Bank to continue lowering borrowing costs. “The recent evidence further supports the [...]
What’s behind the bond market turmoil? January 9, 2025 Although the jitters had calmed somewhat by Thursday afternoon, traders will be on high alert over the coming days.
What is a gilt? And why should you care? January 9, 2025 Investors have been drawing comparisons to the bond market meltdown following Liz Truss's mini-Budget as well as the IMF bailout way back in 1976.
Price hikes are coming as firms battle Reeves tax raid, Bank of England survey suggests January 9, 2025 The Bank's latest decision maker panel, which surveys finance chiefs around the country, showed that firms' inflation expectations picked up in December.