View more on these topics

Gilt yields fall to record low

Gilt yields have fallen to a record low as the Chancellor indicated that the Bank of England may be set to introduce more monetary stimulus if the country needs it on the back of the spending review.

Speaking on Thursday, Chancellor George Osborne said that the coalition Government had set out a decisive plan to tackle the Budget, but indicated that policymakers at the Bank of England may be set to add to the £200bn of quantitative easing already pumped into the economy.

He said: “This country needs a decisive plan and we’ve set out the decisive plan. It has some caution built into it, there is of course freedom from the Bank of England to deploy monetary tools as well.”

At 8.44am 10-year gilt yields stood at 3.05 per cent, while two year gilt yields stood at 0.62 per cent.

Minutes for the MPC’s October meeting showed that Adam Posen called for further quantitative easing to the tune of £50m.

MPC member David Miles said: “The way we have set monetary policy has been extremely expansionary and we still have these weapons if necessary.

“There is still an awful lot of uncertainty in the global banking sector. There is still plenty of risks and things could turn worse.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Gilt is a great site if you like to buy designer clothes. If an undershirt and gym shorts are your go-to outfit you won’t find much there. The site is invite only, so if you know someone that is a member ask them for an invite, otherwise you can use my link: gilt.com/invite/wpd

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com