Afternoon Rate Update

Good afternoon! Here’s your Local Authority Treasury update following the latest PWLB rates and market developments.

Headline

PWLB Rates Shift Slightly: A Quiet Afternoon with Minor Adjustments

Notice Details

The latest PWLB Interest Rate Notice is number 490/25, issued at 12:30 on December 17, 2025.

Maturity Rates

• 1y: 4.61% (+1bps)
• 3y: 4.75% (+2bps)
• 5y: 4.95% (+2bps)
• 10y: 5.53% (+2bps)
• 25y: 6.17% (+3bps)
• 50y: 5.94% (+3bps)

While the rates have seen a slight uptick, none have moved significantly enough to cause alarm, indicating a stable borrowing environment.

Afternoon Context

Since this morning, the UK inflation rate has been confirmed at 3.2%, below the forecast of 3.4%, which continues to support expectations for a potential interest rate cut by the Bank of England tomorrow. The 10:30am release of the CBI Industrial Trends Orders showed an actual of -32 against a forecast of -34, suggesting a slight improvement in business sentiment. Overall, the market remains focused on the implications of these inflation figures as they relate to gilt yields, which have shown little movement in response to the afternoon's updates.

Calendar Events

• Tomorrow: GBP Official Bank Rate - 12:00 - Forecast: 3.8%
• Tomorrow: GBP MPC Meeting Minutes - 12:00
• Tomorrow: GBP BoE MPC Vote Cut - 12:00 (Previous: 4)
• Tomorrow: GBP BoE MPC Vote Hike - 12:00 (Previous: 0)
• Tomorrow: GBP BoE MPC Vote Unchanged - 12:00 (Previous: 5)

This commentary is provided for informational purposes only and should not be construed as financial advice. Market conditions can change rapidly, and you should always verify current rates directly with the PWLB or through official channels before making borrowing decisions. Past performance is not indicative of future results.

Until next time, may your rates be low and your treasury decisions sound!