The era of ultra-low interest rates is over as markets adjust to higher yields

Markets should accept cheap money isn’t coming back

UK · 2026-09-29

The era of ultra-low interest rates is over; markets must adjust to structurally higher yields. Who it reaches: UK SME borrowing costs increase as lenders reprice loans and facilities off the higher gilt curve, squeezing margins for rate-sensitive businesses. Named: companies Bank of England, Tesco PLC, Travis Perkins plc; sectors Retail.

1. Step 1 · The triggerUS central banks signal that low interest rates are not returning, shifting market expectations to a higher-for-longer regime.
2. Step 2 · Knock-onGlobal risk-free yields, including UK gilts, rise as investors reprice the path of policy rates and inflation.
3. Step 3 · Reaches youUK SME borrowing costs increase as lenders reprice loans and facilities off the higher gilt curve, squeezing margins for rate-sensitive businesses.

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: City A.M.

Automated analysis for information only. Not investment advice. Read the full disclaimer.