Economists are urging Chancellor John Healey to persuade the Bank of England to slow or halt its bond-selling program, which has cost the exchequer billions of pounds.
Key takeaway
Bank of England's bond-selling (QT) has raised UK government borrowing costs by billions.
- Step 1 · The triggerBank of England's continued bond-selling adds gilt supply, pushing prices down and yields up
- Step 2 · Knock-onhigher gilt yields increase government and private sector borrowing costs
- Step 3 · Reaches youUK SMEs with floating-rate debt or refinancing needs face higher interest expenses, squeezing margins
The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.
Source: The Guardian Business
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