Borrowing

• UK borrowing costs experienced the fastest decline in Europe on Wednesday following news that inflation unexpectedly remained steady at 2%. • Market indicators suggest the Bank of England is unlikely to raise interest rates until November, pushing back previous expectations of a September increase. • Suren Thiru of ICAEW notes that softer May data makes an interest rate hold during Thursday's meeting highly probable.

• Europe is pursuing "digital sovereignty" to achieve technological autonomy and reduce strategic dependence on foreign entities. • Despite efforts to build its own cloud infrastructure, the region remains heavily reliant on the U.S. public and private sectors for critical threat intelligence and cyber attribution. • This gap highlights a contradiction where Europe may establish regulatory control but lacks the operational capabilities to manage major cyber incidents independently.

• Thailand’s cabinet approved new borrowing of 200 billion baht, or $6.13 billion, to support a consumer subsidy scheme, Finance Minister Ekniti Nitithanprapas said Tuesday. • The package is part of the government’s effort to cushion households from higher costs linked to the Middle East conflict and broader economic pressure. • The decision matters because it shows Bangkok is using fiscal support to stabilize living costs and shore up demand at a fragile moment for the economy.

Washington-based fund praises Rachel Reeves for aiming to cut budget deficit as it upgrades growth forecastsBusiness live – latest updatesThe International Monetary Fund has urged Britain to “stay the course” to cut government borrowing amid growing bond market concerns over a Labour leadership challenge.As Keir Starmer battles to cling on to power, the Washington-based fund said it was important to continue reducing the budget deficit “given market pressures and elevated implementation risks”. Continue reading...

Bond yields soar and pound falls against dollar as investors brace for potential Labour leadership changeBusiness live – latest updatesUK politics live – latest updatesLong-term UK borrowing costs have soared to the highest level in nearly three decades while the pound and stocks fell, as investors braced for a potential change of leadership, with cabinet ministers urging Keir Starmer to quit.Starmer is consulting colleagues before a crunch cabinet meeting on Tuesday morning that comes after ministerial aides quit and more than 70 MPs publicly called for him to go. Continue reading...

Bond yields creep higher on concerns about potential for political instability and rising inflationBusiness live – latest updatesUK politics live – latest updatesThe cost of government borrowing has crept higher as Keir Starmer’s crucial speech failed to dispel investor “jitters” in the bond markets over political instability combined with fears of rising inflation.The yield, effectively the interest rate, on the benchmark 10-year UK government bonds (known as gilts) rose eight basis points (or 0.08 of a percentage point) to 5% on Monday. Continue reading...

Bond yields drop as market fears ease that Labour leader will be replaced by a more leftwing rival Elections 2026 – live updatesBusiness live – latest updatesUK government borrowing costs fell and the pound rose on Friday as Keir Starmer vowed to remain as prime minister despite the Labour party losing hundreds of council seats across England.Investors calculated that some of the intense pressure on Starmer’s leadership had eased, as Labour appeared on track for a smaller losses than election experts had predicted. Continue reading...