Bank of England's Bond Shift Eases Borrowing Costs as Retail Surprise and Insolvency Spike Tell Conflicting Stories

The Bank of England delivered a double surprise on Thursday, holding interest rates at 3.75% while overhauling its bond sale programme. The unexpected pivot to end long-term gilt sales sent borrowing costs tumbling and gilts rallying, even as the committee warned inflation could top 4% before year-end. Three MPC members, including chief economist Huw Pill, voted for a 25 basis point hike, but the majority held firm.

Trade Routes

• Two-year gilt yields fell **8 basis...