Borrowing Costs Climb Most Since Mini-Budget on Inflation Fears

Borrowing costs climb most since mini-Budget on inflation fears

The government’s borrowing costs rose dramatically on Friday and were on track to have their worst week since Liz Truss’s fateful mini-Budget, amid fears the escalating war in the Middle East will unleash another bout of high inflation. The interest rate on UK bonds – known as gilts – rose across the board, to reach the highest they have been since September, as traders aggressively wrote off the chance of any interest rate cuts happening for th…

UK borrowing costs rise again on inflation fears over Middle East war

Yields on two-year ⁠gilts - which are sensitive to short-term interest rate expectations - rose by 9 basis points to a peak of 3.815%