UK policy mix challenged by the market

A surge in long-term government bonds along with a slide in the pound has been a sign of market nervousness as markets are concerned about persistent inflation and budget sustainability. Following the Budget announcement, we expected borrowing costs for the UK debt to rise. While new fiscal targets visually improve the UK’s fiscal situation, the reality is different. T he General Government Gross Debt, which is more widely used in other countries , most notable in the European Union, is expected to increase from 100% of GDP in 2023-24 to 106% in 2029-30. Market pricing is adjusting quic...

Royaume-Uni : les taux longs atteignent des sommets inquiétants