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The Guardian - UK
The Guardian - UK
Business
Phillip Inman

UK’s cost of borrowing on international markets overtakes Greece and Italy

The governor of the Bank of England, Andrew Bailey
The governor of the Bank of England, Andrew Bailey, stopped short of announcing an emergency interest rate rise on Monday. Photograph: Yui Mok/PA

Britain’s cost of borrowing on international money markets has jumped above the rates paid by Greece and Italy as traders priced in a higher risk of default on UK government debt.

After frantic selling since Kwasi Kwarteng’s mini-budget last Friday, the five-year UK government bonds suffered a dramatic fall in value, which had the effect of doubling the interest rate on the debt since August.

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