The Latest Breaking News from The Bank of England

She became Britain’s first female Chancellor in July against a daunting backdrop of a sluggish economy and competing demands for public spending.

Labour chancellor accused of ‘undesirable’ policies and ‘incompatible promises’

UK borrowing costs have risen rapidly to their highest level since the banking crisis of 2007-08, with implications for the government’s tax and spending plans. Yields on gilts, as UK government bonds are called, have been rising – and these yields are effectively the level of interest that the government…

Sir John Gieve, former Deputy Governor at the Bank of England, said the Chancellor may have to hike taxes or impose some ‘very severe reductions and squeezes’ on public services

Labour’s fiscal rules may limit the chancellor’s ability to act, but waiting it out may be the best option

Sarah Breeden, the Bank’s deputy governor for financial stability, also said firms might respond to the tax rises by cutting staff or raising prices.

Unlike 2022, bond markets have not been shocked, but the chancellor will know threat of a doom loop is not far away

Shares in 200-year-old British firm jump by as much as 12% after conditional offer from City financier

High government borrowing costs come amid fears that inflation is creeping up again, which could lead the Bank of England to keep rates on hold

Throughout 2024, many home owners and prospective first-time buyers would have kept a close eye on the Bank of England’s base interest rate. Eventually, the first cut arrived in August (from 5.25% to 5%), followed by another drop to 4.75% in November.

Chancellor in danger of breaking fiscal rules after cost of servicing UK 10-year debt rises to highest level since 2008