UK Finances Fecked

[malvolio]

Last week”s 10yr Gilt issue was ten time oversubscribed - they were selling £14bn and got orders for £140bn - so we don’t need to worry too much

Yes we do. Of course there is a demand for gilts at 5% or more. It's a no-lose option.

Nor do they care if we go effectively broke. Which is increasingly likely

[WTFH]

She only became PM on 6th Sept 2022, and it was 3.1% already by then! So yeah, you can't pin the 3x on her...

So you’re admitting it tripled in 2022, and you thought nothing of that, but now you’re in meltdown because it has gone up by half in the last 2 years. Is your degree in economics from Trump University?

[malvolio]

So you’re admitting it tripled in 2022, and you thought nothing of that, but now you’re in meltdown because it has gone up by half in the last 2 years. Is your degree in economics from Trump University?

Perhaps ignore the statisiical nonsense and look at the actual annual cost of the borrowing 2022 to 2025 - roughly £55bn in 2022 against £106bn in 2025 (OBR figures quoted). Double in three years...

[willendure]

It does raise the question of why is the UK 10 year interest rate so high, compared with EU countries? The answer would seem to be that inflation in the UK is higher, but why is that? Is it just down to energy costs?

[Protagoras]

It does raise the question of why is the UK 10 year interest rate so high, compared with EU countries? The answer would seem to be that inflation in the UK is higher, but why is that? Is it just down to energy costs?

It looks to me as if inflation for the most part is driven by input cost rises, rather than excessive demand. A good chunk of this is imported.

Energy is certainly a big factor and one over which government has control. The 'market' is impaired by policy related distortions (e.g. subsidies) and market design. It's in government's gift to reform this, but they won't.

Then there's inflation arising simply from labour input costs; increasing employer NI => increased prices and reduced labour demand. Again, a policy cost.

Certain commodities, such as cocoa have had production impacted; whether this justifies the prices we see for chocolate in the shops is another matter.

I also reckon lots of firms are simply 'at it', increasing prices because of their market power, to increase profits. Insurance premiums, for example, have become silly. Maybe there's a lack of effective competition.

[WTFH]

I note that the 30 year has dropped from 5.7% at the start of September to 5.2%, which would imply it's now negatively climbing rapidly. I wonder what other Express-level stories the OP is coming out with?

[willendure]

I note that the 30 year has dropped from 5.7% at the start of September to 5.2%, which would imply it's now negatively climbing rapidly. I wonder what other Express-level stories the OP is coming out with?

That was then. This is now.