China

Chancellor Rachel Reeves faces crucial financial decisions as UK borrowing costs reach their highest level in 16 years, according to former Bank of England deputy governor Sir John Gieve. Reeves, who committed to not borrowing for day-to-day spending and reducing debt relative to national income, must now navigate between increasing borrowing, raising taxes, or reducing public spending. The UK's 10-year borrowing costs have climbed to levels not seen since 2008, while the pound has dropped below $1.22 against the dollar. Unlike typical scenarios where higher borrowing costs strengthen the pound, analysts suggest broader concerns about the UK economy affect sterling's value. The Treasury has maintained that markets continue to operate normally, ruling out emergency intervention. The global rise in government borrowing costs stems from investor concerns about U.S. economic policies and inflation risks. Sir John Gieve noted that UK yields […]