Concerns Over UK Budget Lead to Decline in Gilts Amid Borrowing Plans

Reported about 1 month ago

UK government bonds experienced a decline as investors anticipated Chancellor Rachel Reeves' proposal for a substantial borrowing plan to enhance investment and address the fiscal deficit left by the previous administration. The yield on 10-year gilts rose alongside predictions of increased borrowing, potentially widening the funding gap for public services. Analysts suggest that Reeves' budget announcement on October 30 could significantly influence the country’s financial trajectory, while it also raises concerns about inflationary pressures and the Bank of England's future policies.

Source: YAHOO

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