UK government borrowing costs fall as City welcomes ‘no harm’ budget’ – business live

The UK government's borrowing costs have decreased as investors react positively to the new budget. This means that the UK government can now borrow money at a lower interest rate, which is good news for the economy as it will save them money on debt repayment. The lower borrowing costs are also a sign that investors have confidence in the UK's economic future, which can help to attract more investment and boost growth.

Why it matters

The UK government's budget did not spook the gilt markets, which means investors are not selling their UK bonds. This lack of selling pressure is causing gilt yields to fall.

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