UK borrowing costs hit their highest level since banking crisis; economist explains what’s happening

UK borrowing costs hit their highest level since banking crisis; economist explains what’s happening https://www.taxtmi.com/news?id=30087 Rising sovereign bond yields have increased the government's cost of borrowing due to expanded issuance after the October budget and broader global factors. Higher yields reduce funds available for public services and-consistent with the Chancellor's fiscal rules-may require further tax increases or spending cuts. A large share of inflation-linked gilts heightens sensitivity of debt-servicing costs to inflation, constraining fiscal manoeuvrability and raising the risk that interest payments will crowd out other budgetary priorities. en-us Sun, 12 Jan 2025 12:16:02 +0530 Sun, 12 Jan 2025 12:16:02 +0530 TaxTMI RSS Generator UK borrowing costs hit their highest level since banking crisis; economist explains what’s happening https://www.taxtmi.com/news?id=30087 Rising sovereign bond yields have increased the government's cost of borrowing due to expanded issuance after the October budget and broader global factors. Higher yields reduce funds available for public services and-consistent with the Chancellor's fiscal rules-may require further tax increases or spending cuts. A large share of inflation-linked gilts heightens sensitivity of debt-servicing costs to inflation, constraining fiscal manoeuvrability and raising the risk that interest payments will crowd out other budgetary priorities. News - Sun, 12 Jan 2025 12:16:02 +0530 https://www.taxtmi.com/news?id=30087