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27.03.26 - 18:12
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UK government borrowing costs hit 5% as Iran war fuels bond market sell-off (The Guardian)
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Yields on 10-year debt reach highest since the 2008 financial crisis, raising concerns of faster interest rate risesUK government borrowing costs have risen above 5% amid an intensifying global bond market sell-off fuelled by the Iran war.The yield – or interest rate – on 10-year debt hit its highest level since the 2008 financial crisis, rising 13 basis points to 5.081%, as investors acted on concerns about the economic fallout from the conflict. Continue reading......
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24.03.26 - 10:12
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Why the Iran War Rattled the UK Bond Market (Bloomberg)
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The conflict in the Middle East has rattled markets around the world, but the gyrations have been especially pronounced in UK bonds, which are particularly vulnerable to jitters over inflation and strained government finances....
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24.03.26 - 08:12
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UK mortgage interest rates expected to rise despite Trump′s Iran pause (The Guardian)
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Bank of England likely to make two quarter-point increases amid sustained rise in inflation, investors believeBusiness live – latest updates'Trumpflation': how the Iran war's economic storm could affect BritonsHomeowners' choice of mortgage deals has shrunk and interest rates on home loans are expected to rise this week despite financial markets reacting positively to Donald Trump's pause on his threat to attack Iranian power plants.Early on Monday, as the end of a two-day deadline set by Trump for a deal with Iran grew closer, financial market data implied that investors believed the Bank of England would attempt to tackle rising prices with four quarter-point increases in rates before the end of December. Continue reading......
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19.03.26 - 17:54
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Bank of England holds interest rates at 3.75% and signals rise is possible within months (The Guardian)
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Decision comes as concerns mount over economic fallout from Iran war bringing inflation shockAnalysis: BoE delivers message Britons don't want to hearBusiness live – latest updatesThe Bank of England has kept interest rates on hold and signalled it could be forced to increase borrowing costs in the coming months as the US-Israel war on Iran threatens to drive inflation in the UK above 3%.The Bank's rate-setting monetary policy committee (MPC) voted unanimously to keep its base rate at 3.75% amid growing concern over the surge in energy prices triggered by the conflict. Continue reading......
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19.03.26 - 13:57
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UK Gilt Yields Explode Higher On Surprise BoE Rate-Hike Threat (ZeroHedge)
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UK Gilt Yields Explode Higher On Surprise BoE Rate-Hike Threat
The Bank of England shocked markets this morning, signaling that it is prepared to raise rates to counter a pickup in inflation driven by the conflict in the Middle East.
Specifically,t he BoE said it would act to counter the pickup in inflation if it threatened to become persistent, but faced high levels of uncertainty about the outlook and would seek greater clarity before deciding on the path for interest rates.
"I will be monitoring developments extremely closely and stand ready to act as necessary to ensure inflation remains on track to meet the 2% target," said Gov. Andrew Bailey.
Before attacks on Iran by the U.S. and Israel began late last month, the U.K.'s central bank had been expected to lower borrowing costs at this week's meeting of its policymakers.
However, the conflict has sent energy prices surging, while its impact on fertilizer costs is likely to see a revival of food inflation.
Instead of cutting, th...
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19.03.26 - 08:24
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Bank of England expected to leave interest rates on hold as Middle East crisis drives up oil and gas prices – business live (The Guardian)
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Rolling coverage of the latest economic and financial newsFed holds interest rates steady as Iran war drives up oil prices and inflation fearsMiddle East crisis live: Trump threatens to 'blow up' entire South Pars gasfield if Iran strikes QatarThe oil price is rising rapidly again today, adding to the headache facing central bankers.Brent crude is up 5.9% at $113.76 a barrel, as tensions escalate in the Middle East.“Expectations for UK interest rates have shifted materially in recent weeks, with markets now anticipating that the Bank of England will hold rates in March, keeping rates at 3.75%, despite previously pricing in a cut.The primary driver has been the rise in oil and gas prices linked to the Iran conflict, which has pushed inflation risks higher. This creates a difficult backdrop for both policymakers and investors. In fixed income markets, UK government bonds have already come under pressure at times, with yields rising as rate‑cut expectations have been pared back and, more recently, part...
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