Pound May Need To Fall To Plug The Hole Of Uk S International Debt



The UK has a huge stock of debt it needs to service and refinance, a net £900bil (RM4.52 trillion) of it. (Bloomberg) – Borrowing costs in the UK will ultimately determine how far sterling needs to fall to plug the country’s external deficit.
Bonds and sterling have sold off sharply in recent days (notwithstanding the relief rally), but it’s the market with the lower liquidity –gilts – that will be the main determinant of sterling’s performance.
Five-year gilt yields are at around 4.6%, from only 3% earlier this month.
Around 25% of the gilt market is held by overseas investors, so government borrowing costs are very sensitive to capital that could easily find an alternative home (and some surely has already).
When government borrowing costs rise, borrowing costs for the private sector rises –for companies through debt and loans, and for households principally through rising mortgage costs.
Moreover, some of the current rise in rates will get baked in, even if the Bank of England ultimately doesn’t have to hike as high as the 5.5% to 6% the market is currently expecting. The government, or any company issuing debt now, will be locked in at a higher rate.
Ditto for any mortgage holder re-fixing.
There is thus no way for the UK to completely undo the recent damage done.
And the UK has a huge stock of debt it needs to service and refinance, a net £900bil (RM4.52 trillion) of it.
As gilt yields rise, private-sector borrowing costs will also rise, damaging firms’ balance sheets and deterring investment.
On the top of that, mortgage holders will see their costs rise too.
Needless to say, this will be detrimental for the economy.
Sterling is the release valve.
The currency will have to probe to find a level where foreign investors believe the long-term return on UK assets is attractive enough.
Similarly, there will be a level of a sterling where UK holders of foreign assets find it attractive to repatriate the capital.
Unfortunately for the UK, that large debt held by international investors means capital can leave faster than it comes back in.
 


Artikel ini hanyalah simpanan cache dari url asal penulis yang berkebarangkalian sudah terlalu lama atau sudah dibuang :

https://www.malaysia-today.net/2022/09/30/pound-may-need-to-fall-to-plug-the-hole-of-uks-international-debt/

Kempen Promosi dan Iklan
Kami memerlukan jasa baik anda untuk menyokong kempen pengiklanan dalam website kami. Serba sedikit anda telah membantu kami untuk mengekalkan servis percuma aggregating ini kepada semua.

Anda juga boleh memberikan sumbangan anda kepada kami dengan menghubungi kami di sini
Punya Potensi Drama The King S Affection Dr Brain Kini Tercalon Dalam International Emmy Awards

Punya Potensi Drama The King S Affection Dr Brain Kini Tercalon Dalam International Emmy Awards

papar berkaitan - pada 6/10/2022 - jumlah : 180 hits
Drama The King s Affection dan Lee Sun gyun kini tercalon dalam anugerah hebat ARTIKEL BERKAITAN Akademi Seni dan Sains Televisyen Antarabangsa baru baru ini mengumumkan pencalonan bagi anugerah International Emmy Awards pada tahun ini Anug...
Ge15 May The Least Despised Coalition Win

Ge15 May The Least Despised Coalition Win

papar berkaitan - pada 17/9/2022 - jumlah : 212 hits
Let s cut to the chase Given how wary and weary Malaysians have become of our politicians who seem to be disconnected from our daily ups and downs none of them actually deserve our votes However Malaysians will go to the polls again before ...
Kitchen Plan Everything You Need To Know About The Different Types Of Interiors

Kitchen Plan Everything You Need To Know About The Different Types Of Interiors

papar berkaitan - pada 18/9/2022 - jumlah : 292 hits
Do you intend to transform your kitchen but do not yet know which configuration to adopt Our kitchen plan inspiration will definitely help you with your decision When designing a kitchen a few basic rules The post appeared first on
But Where S The Peace On International Day Of Peace

But Where S The Peace On International Day Of Peace

papar berkaitan - pada 24/9/2022 - jumlah : 210 hits
How many of us were aware that Sept 21 was the International Day of Peace Celebrated for the first time in 1982 this United Nations initiative is to remind all of us who inhabit this planet of the need to strengthen and preserve peace The U...
Avatar Re Release Menampilkan Babak Pasca Kredit Berserta Kejutan Menjelang Debut Avatar The Way Of Water

Avatar Re Release Menampilkan Babak Pasca Kredit Berserta Kejutan Menjelang Debut Avatar The Way Of Water

papar berkaitan - pada 23/9/2022 - jumlah : 192 hits
Dengan Avatar ditayangkan semula di pawagam di seluruh dunia media sosial heboh dengan berita mengenai babak pasca kredit dan kejutan yang membuatkan peminat terus berada di kerusi panggung wayang semata mata untuk menonton babak baharu itu...
Is The Ringgit Really That Weak

Is The Ringgit Really That Weak

papar berkaitan - pada 23/9/2022 - jumlah : 318 hits
There have been many and varied comments made on the decline of the ringgit and its reasons with the perplexing question being the weakness of the ringgit given a rosy economic outlook which predicts growth of 5 6 and a strongly recovering ...
A Relaxing And Stylish Green Bed For The Bedroom

A Relaxing And Stylish Green Bed For The Bedroom

papar berkaitan - pada 23/9/2022 - jumlah : 252 hits
We won t get tired of repeating it the bedroom is the room where we recharge our batteries after a hard day s work And it deserves our full attention With decoration in relaxed tones and above all quality rest equipment base The post appear...
Where Is The Islamic Spirit Of Forgiveness Deputy Minister Asks Najib Haters

Where Is The Islamic Spirit Of Forgiveness Deputy Minister Asks Najib Haters

papar berkaitan - pada 23/9/2022 - jumlah : 249 hits
Deputy Youth and Sports Minister Ti Lian Ker questioned why there was no sympathy given to Najib Abdul Razak especially among Malays and Muslims This comes after a backlash over allegations that the jailed former prime minister is receiving...
Susu Snek Padu Buat Hari Lebih Gembira

Cemburu Dengan Hasil Usaha Orang Lain

Not By Accident

Pn Dan Pas Nak Halang Apa Yang Mereka Dah Luluskan

Isu Petronas Dan Buang Pekerja

Agen Mesin Laundry Pontianak Berikan Layanan Pendampingan Dan Purna Jual Ke Para Pelanggan

Why Terpene Purity Is The Unsung Hero In Premium Cannabis Products

Tips Menang Di Gudangtoto


echo '';
Info Dan Sinopsis Drama Berepisod Dendam Seorang Madu Slot Tiara Astro Prima

10 Fakta Biodata Amira Othman Yang Digosip Dengan Fattah Amin Penyanyi Lagu Bila Nak Kahwin

5 Tips Macam Mana Nak Ajak Orang Kita Suka Dating Dengan Kita

Info Dan Sinopsis Drama Berepisod Keluarga Itu Slot Lestary TV3

Bolehkah Manusia Transgender Mencapai Klimaks Selepas Bertukar


Air Asam Perut Lembu

Bukan Tak Nak Cakap Melayu Tapi Memang Mak Bapak Aku Tak Ada Darah Melayu Nak Buat Macam Mana Ameera Khan

Baru Saya Faham Kenapa Orang Merentan Pasal Pak Mat Western Individu Kongsi Pengalaman Tak Best Ketika Ke Restoran Pmw

Penunggang Motosikal Maut Langgar Tembok Batu Tercampak Sebelum Jatuh Parit

Daqmie Korbankanlah Chord

Father S Day Chocolate Treats By Elevete You Can T Miss