Yields on UK government bonds have surged, reaching historic highs, amid concerns over inflation, public finances, and sticky interest rates, leading to economic turmoil.
The 10-year gilt yield recently climbed to 4.9%, its highest level since 2008, while the pound fell to a 14-month low against the dollar, highlighting investor anxiety.
Economy projections have turned bleak, with Goldman Sachs estimating a mere 1.2% growth rate for 2025, far below anticipated levels, pointing to a challenging recovery ahead.
Despite a reduction in the Bank of England's base interest rate to 4.75%, inflation remains stubbornly above target, complicating monetary policy and economic stability.
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