Gilts plunge as interest rate rises recede
by Larry Elliott from on (#13NGN)
The Bank of England's next move could be more QE or even interest rate cuts. But would Osborne ever consider the activity booster of infrastructure investment?
A record was broken during the latest wave of selling on the world's stock markets. As share prices plunged the yield on 10-year UK government gilts fell to levels never seen before.
Should he wish to do so, George Osborne could borrow money in the markets more cheaply than any of his predecessors: neither Benjamin Disraeli nor William Gladstone (a particular hero of the chancellor) enjoyed interest rates as low as 1.29%.
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