BoE Governor Andrew Bailey told the Treasury Committee that the recent rise in long-term borrowing costs reflects global trends rather than UK-specific issues. Responding to questions on the growing cost of government debt, Bailey emphasized that similar, or even steeper, yield increases have occurred in other advanced economies.
He attributed the shift to heightened uncertainty on two key fronts: “one is uncertainty around what is going on in trade policy at the moment. The second thing is uncertainty globally around fiscal policy he said.
Bailey noted that unpredictable tariff strategies and widening fiscal deficits are contributing to volatility in fixed income markets worldwide, driving up yields across the curve. “It is greater uncertainty, clearly,” he said.
