Labour could borrow more without UK bond market backlash, say investors

Quick Summary:

Labour could “probably” add “£20bn or £30bn” to the gilt remit without pushing up borrowing costs, said Tomasz Wieladek, chief European economist at T Rowe Price.

Investors broadly expect Reeves to stick to the current plans for net gilt issuance of £216bn in the current financial year, the highest on record adjusting for Bank of England sales and purchases.

Shadow chancellor Rachel Reeves has promised to retain the Conservative government’s commitment that debt as a proportion of GDP must be on track to fall in five years if Labour wins the July 4 election.

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Article Details

Author / Journalist: Sam Fleming

Category: MarketsFinanceInvesting

Markets: United States

Topics: Financial Markets Reeves Labour Debt Rules Borrowing Government Fiscal Investors Been

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-06-20 @ 04:00:16 (2 weeks ago)

News Timezone: GMT -5:00

News Source URL: ft.com

Language: English

Article Length: 808 words

Reading Time: 5 minutes read

Sentences: 23 lines

Sentence Length: 36 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Financial Times

News ID: 21317173

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