In the coming week, the British monetary authorities will discuss the further course.
(Photo: dpa)
Frankfurt,London When central bank governor Andrew Bailey calls the next meeting of the Bank of England for June 22, he and his colleagues have an extremely delicate task ahead of them. With high wage increases and persistent inflation, investors in the markets are betting that the Bank of England will have to raise interest rates significantly again, and this is causing considerable turmoil in the bond markets.
Prices are falling, and yields are rising, which are now higher for short-dated bonds than during the budget crisis last autumn, which caused turbulence on the global financial markets.
On Tuesday this week, the two-year government bond yield, which is the most sensitive to expected interest rate changes, rose to a high of 4.89 percent. That is the highest since the 2008 financial crisis.
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