The Bank of England has taken another step toward easing, cutting the base rate from 4.5% to 4.25% in a widely anticipated but cautious move. There was however a split in the voting so it wasn’t unanimous. With inflation easing—coming in at 2.6% in the year to March—markets had priced in a cut, though the Bank’s measured 25bp shift suggests policymakers remain …
Gilt yield drama makes rising annuity rates ‘hard to ignore’
Dramatic spike in government borrowing costs January started in dramatic fashion for government borrowing with a significant cost spike which saw the 15-year gilt yield standing at 5.17%, compared to 4.23% on the same date the previous year. Uncertainty about the performance of the UK economy and the ramifications for inflation after Donald Trump returns to the White House are …