Bank of England notes recovery in government bond market



10/25/2022 10:50 AM


According to Dave Ramsden, deputy governor of the Bank of England, investor confidence in British economic policy is increasing and unveiling of the tax and spending plan will be crucial to continued recovery.



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Ramsden said the decreased borrowing costs in the financial markets were a welcome start, albeit markets remain "quite anxious," after former finance minister Rishi Sunak was picked as the next Conservative Party leader and Britain's next prime minister.

In the UK government bond market, he said, "yields are showing a return of confidence, but I think that process needs to be continued."

According to Ramsden, it will be crucial when policy and fiscal trends return to some degree of stability.

Jeremy Hunt is anticipated to be replaced as Treasury secretary by Sunak, who is to become Prime Minister on Tuesday.

source: ft.com

 


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