UK government borrowing costs soar to highest since 2008 amid Iran war
by Heather Stewart Economics editor from World news | The Guardian on (#74C9K)
Deficit rises unexpectedly to 14.3bn in February as markets price in up to three interest rate rises in 2026
Investors wary of the impact of the Iran conflict dumped UK government bonds on Friday, pushing the yield, or interest rate, on 10-year borrowing to its highest level since 2008.
The market move followed the Bank of England's decision on Thursday to leave interest rates on hold and hint at a future increase. By Friday morning, markets were pricing in as many as three interest rate rises in 2026.
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