Afternoon Rate Update

Good afternoon! Here’s your Local Authority Treasury update based on the latest developments since this morning.

Headline

PWLB Rates Hold Steady, Market Takes a Breather

Notice Details

PWLB Interest Rate Notice Number 492/25, PM reset at 12:30 on 18 December 2025.

Maturity Rates

• 1y: 4.59% (0bps)
• 2y: 4.65% (0bps)
• 3y: 4.73% (0bps)
• 5y: 4.93% (0bps)
• 10y: 5.50% (-1bps)
• 25y: 6.12% (-2bps)
• 50y: 5.89% (-1bps)

Rates have remained largely unchanged, with only minor adjustments in the longer maturities. It seems PWLB rates are enjoying a quiet afternoon!

Afternoon Context

This morning, the Bank of England cut the official bank rate from 4.0% to 3.75%, which was a significant move aimed at supporting the economy. The MPC voted 5-4 in favor of the cut, reflecting ongoing concerns about economic conditions. Following this announcement, the market has shown a cautious response, with gilt yields remaining stable. The lack of further significant economic releases today has contributed to this calm atmosphere.

Calendar Events

Releases So Far Today:

• 12:00: GBP Official Bank Rate - Actual: 3.75% (Forecast: 3.8%)
• 12:00: GBP MPC Meeting Minutes - Released
• 12:00: GBP BoE MPC Vote Cut - Actual: 5 (Previous: 4)
• 12:00: GBP BoE MPC Vote Hike - Actual: 0 (Previous: 0)
• 12:00: GBP BoE MPC Vote Unchanged - Actual: 4 (Previous: 5)

Remaining Today:

• No further significant economic releases today.

This Week Ahead:

• Tomorrow: GBP GfK Consumer Confidence - Forecast: -18
• Tomorrow: GBP Retail Sales MoM - Forecast: 0.00%
• Monday 22nd: GBP Current Account - Forecast: -18.80B
• Monday 22nd: GBP GDP Growth Rate YoY Final - Forecast: 1.3%

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 treasury operations be as steady as a well-balanced budget!