20 March 2025 UK Monitor Gilt yields to remain high as defence spending increases
18th Mar 2025 17:13UKDaily Monitor
- Higher deficit spending to fund increased security commitments will weigh on gilts.
- We raise our gilt yield forecasts to reflect our call that Bank Rate will settle at 4%, up from 3.75% previously.
- Fewer interest rate cuts relative to major peers will support sterling.
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