UK Borrowing Penalty Fades as Reeves Wins Trust in Bond Markets

The premium Britain pays to finance its debts has narrowed thanks to Chancellor of the Exchequer Rachel Reeves shoring up the public finances in her budget last month, and a helping hand from her central bank.

The shift suggests Reeves is improving her standing with markets that determine the cost of servicing roughly £2.8 trillion ($3.7 trillion) of government bonds. Her decision to increase her fiscal buffer has contributed. So too has the Bank of England, which has brought down inflation and is set to reduce interest rates again next week.