UK 10-Year Gilt Yield Little Changed on Thursday

2025-10-09 09:07 By Agna Gabriel 1 min. read

The UK 10-year gilt yield was little changed at 4.72%, reflecting investor caution ahead of next month’s budget and growing concerns over debt sustainability.

Finance Minister Rachel Reeves faces a tough balancing act as she seeks to meet fiscal targets while avoiding measures that could stifle growth.

Markets expect Reeves to raise taxes again, after her first budget increased employer social contributions by £25 billion.

Analysts forecast modest growth through year-end but see inflation rising to 4%, twice the BoE’s target.

Markets are pricing in two BoE rate cuts next year, with the first not expected until April.

Meanwhile, BoE Chief Economist Huw Pill cautioned against trying to solve all of Britain’s economic challenges through monetary policy, urging “conservative central banking” focused on inflation control.

His remarks counter calls for greater coordination between the BoE and government, as borrowing costs climb and fiscal pressures mount.



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