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UK interest rates fall is the biggest since 1992

UK interest rates fall is the biggest since 1992

Rishi Sunak, the hope of financial markets as the new British Prime Minister. Photograph: Aberto Bezzali/AP/TT

Economy (TT-Bloomberg)

The reactions to Rishi Sunak’s willingness to become Britain’s new Prime Minister are quite clear in the financial markets – the pound is rising and bond yields are falling.

The British ten-year interest rate fell by 0.24 percentage points to a relatively high level of 3.80 percent. The drop also applies to the two-year interest rate, which is the largest in a single day since 1992.

But interest rates have not only fallen in the UK, this decline applies to the whole of Europe. German long-term interest rates fell by ten points (0.10 percentage point). In Italy, Spain and France, the decrease reached 10-15 points.

In Sweden, the ten-year interest rate fell by 0.06 percentage point to 2.14 percent.

In the United States, the decrease was 0.05 percentage points to 4.15 percent. This is since the worst fears about interest rate hikes by the US central bank have been somewhat undermined by residents.

Ole Lindström/TT

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