Bank of England's Bailey Says Government Debt Commitments Needed More than Ever
Bailey said governments must show they can repair public finances as the 10-year gilt yield reached 5.53%, the highest since 2007, Reuters reported.
- On Thursday, Bank of England Governor Andrew Bailey warned in Istanbul that fiscal policy "must be credible and directed at stability" to manage negative shocks like the Iran war.
- British government bond yields surged to their highest in decades on Thursday, triggered by a global selloff amid rising oil prices and geopolitical tensions.
- The 10-year gilt yield rose to about 5.53% on Thursday, the highest level since 2007. Analysts estimate the Chancellor's fiscal headroom narrowed from £23.6 billion to £11.3 billion.
- Chancellor John Healey must finalize his Budget later this month amid fiscal constraints. Bailey warned that calls for increased spending grow louder when borrowing costs rise and growth weakens.
- Bailey argued that maintaining strict fiscal rules is essential to curb investor demands for higher returns. Central banks must remain focused on bringing down inflation while governments repair public finances.
16 Articles
16 Articles
Bank of England's Bailey says credible budget policy is needed more than ever
Governments need to redouble efforts to restore confidence in their public finances, Bank of England Governor Andrew Bailey said on Thursday, as global bond markets come under pressure from high borrowing and rising inflation linked to the Iran war.
Bailey: Governments must too help control inflation
Bank of England governor Andrew Bailey has said that governments should look to help keep prices stable and win over markets with disinflationary tax and spending measures. In an intervention on the relationship between monetary and fiscal policy, Bailey urged governments to consider the impacts of government spending and borrowing on inflation. The Bank of [...]
The president of the Bank of England (BoE), Andrew Bailey, warned that the ability of governments to respond to a new economic slowdown is limited by weak growth and recent shocks. Amid the falling prices of public bonds (and high in their revenues), which are being pushed by energy costs and tax concerns in France, Bailey stressed the need for reliable fiscal policies for markets. Exclusive material for subscribers. To have full access, access …
Evening Standard
Low growth and successive shocks erode public finances, Bank boss says
Andrew Bailey’s remarks come weeks before the Chancellor lays out his autumn Budget statement.
The Governor of the Bank of England, Andrew Bailey, said that governments need to redouble their efforts to demonstrate their ability to reform public finances, with bond markets around the world under pressure from rising levels of borrowing and rising inflationary pressures. At a conference organized by the Turkish Central Bank today Thursday, Billy stressed that fiscal policy, whatever its direction, must be credible and directed towards [...…
The weak economic growth and the succession of shocks that have affected the economy have eroded public finances, warned Andrew Bailey, Governor of the Bank of England, a few weeks before the British Minister of Finance presents the draft autumn budget. The message places additional pressure on the London Executive, who will have to base his budgetary decisions in a more difficult fiscal context. The deterioration of public finances restricts th…
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