Brief by Shorts91 Newsdesk / 05:35pm on 09 Jan 2025,Thursday International
The pound dropped 0.9% to $1.226, its lowest in over a year, as UK borrowing costs soared to a 16-year high. Economists warned that rising costs could force tax hikes or spending cuts to meet fiscal rules. Treasury Minister Darren Jones dismissed the need for emergency action, citing orderly market conditions. Shadow Chancellor Mel Stride criticized the government for higher debt and lower growth concerns. Mohamed El-Erian of Allianz highlighted rising debt interest costs and slower growth impacts. The Bank of England held interest rates at 4.75%, citing uncertainty. Global factors, including US policy shifts, also influenced bond yields.
