UK Bond Selloff Puts Reeves’ Economic Project on the Brink
Borrowing costs have risen, pound has declined to lowest in more than a year
This article is for subscribers only.
UK Chancellor of the Exchequer Rachel Reeves came into government promising a growth miracle, economic security and stability in the public finances. Six months in and her project is close to being in tatters.
Reeves is struggling to maintain the confidence of financial markets as the UK becomes the focus of a global bond selloff. Despite her and premier Keir Starmer making “fiscal responsibility” a watchword of last year’s election campaign that helped deliver the first Labour government in 14 years, they’ve been hit with an investor revolt that’s pushing up borrowing costs and risking a doom loop for the public finances.