UK Gilt Yield Surges Past 4.8% on BoE’s Hawkish Hold

2026-03-19 12:11 By Joana Ferreira 1 min. read

The UK 10-year gilt yield climbed above 4.8%, reaching its highest level since September 2025 and nearing an over one-year peak, after the Bank of England unanimously voted to hold rates at 3.75%, a more hawkish stance than expected.

Markets had anticipated a 7-2 split in favor of steady rates, but policymakers highlighted concerns over the Middle East conflict’s impact on surging global energy and commodity prices.

The BoE now expects near-term CPI inflation to rise due to the fresh economic shock, reversing prior trends of disinflation in domestic prices and wages.

In response, traders have fully priced in two rate hikes this year, intensifying bets on tighter monetary policy.

On the economic data front, UK jobs data showed slower wage growth and unemployment holding at 5.2%, both missing expectations.



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