UK Long-Term Borrowing Costs Hit 28-Year High Ahead of October Budget
By Aboki Forex —
Long-term UK government borrowing costs have climbed to their highest level in 28 years, intensifying pressure on Prime Minister Andy Burnham as he prepares to deliver his first Budget in October. The yield on a 30-year gilt, a loan to the British government, rose to 5.89% on Tuesday, the highest since 1998.
Global borrowing trends
Borrowing costs in the United States, Japan and Europe have also hit similar highs in recent days. The moves reflect investor concerns about inflation, the level of state borrowing, and heavy spending by large technology companies on artificial intelligence.
'Fiscal responsibility' pledge
Addressing the House of Commons, Burnham said his government's "bedrock" as it confronts the cost-of-living crisis would be "fiscal responsibility".