The gilt yield spike and subsequent economic challenges in the UK

After the former British Finance minister, Kwasi Kwarteng, revealed his mini-budget, including unfunded tax cuts on the 23rd of September, the British Pound tumbled to an all-time low against the Dollar of $1.04, and the UK’s borrowing costs surged. After verbal attempts to cool the market failed, the Bank of England (BoE) stepped in to reduce market volatility. However, investors doubt the durability of the BoE’s intervention.

The gilt yield spike and subsequent economic consequences in the UK

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