The path of interest rates at the United Kingdom central bank is under doubt, with the 30-year UK government bond yield reaching a 26-year high.
The uncertainty of the economic outlook in the United Kingdom has intensified, with the 30-year government bond yield reaching a 26-year high. The reasons behind this are, firstly, that the UK government's borrowing has exceeded official expectations this year, which may lead to an increase in UK government bond supply next year, bringing additional risks to the market. Secondly, there are divergences within the Bank of England regarding interest rate cuts, making it difficult for the market to accurately predict future interest rate trends. Thirdly, inflationary pressures coexist with weak economic growth, increasing the difficulty of policy forecasting.
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Kazuo Ueda releases a dovish stance, and both Bank of America and Nomura have postponed their expectations for the Bank of Japan to raise interest rates.
After the President of the Bank of Japan, Kazuo Ueda, expressed a cautious attitude towards interest rate cuts, Analysts from Bank of America and Nomura Holdings pushed back the expected timing of the Bank of Japan's next interest rate hike from January next year to March.
Sterling Struggles After Lackluster U.K. Retail Sales Data -- Market Talk