Bailey warns against 'exaggerating' rise in UK borrowing costs

The governor of the Bank of England has cautioned against "exaggerating" the impact of a steep rise in the UK's long-term borrowing costs, which he said was part of a global trend.

- Phillip Inman Graeme Wearden

Andrew Bailey told MPs the Treasury had continued to borrow at the same interest rate for most of the year despite a rise in the rate on 30-year bonds to a 27-year high.

Bailey's intervention will be a relief to Rachel Reeves, who is under pressure from rising debt costs ahead of a budget set for 26 November.

The governor said the government's switch to borrowing over five or 10 years rather than 30 years meant its borrowing costs had remained flat this year, and commentators should not "over focus" on the figure.