Afternoon Rate Update

Hello again! Here’s your afternoon update on the latest PWLB rates and market context.

Headline

PWLB Rates Shift Slightly: A Gentle Tug at the Rates

Notice Details

PWLB Interest Rate Notice Number 494/25
Rates reset at 12:30 on 19 December 2025.

Maturity Rates

• 1y: 4.65% (1bp)
• 3y: 4.80% (2bps)
• 5y: 5.00% (1bp)
• 10y: 5.57% (2bps)
• 25y: 6.19% (2bps)
• 50y: 5.96% (2bps)

Rates have seen minor adjustments, with the 1-year rate rising by 1 basis point, indicating a slight upward trend in short-term borrowing costs.

Afternoon Context

Since this morning, we have seen several economic data releases. The 10:30am release of the GBP CBI Distributive Trades showed a significant drop to -44, compared to the forecast of -26, indicating a weaker retail environment. Additionally, the GBP GfK Consumer Confidence came in at -17, slightly better than the forecast of -18. These mixed signals reflect ongoing consumer caution, which may influence gilt yields. In the news, the Bank of Japan's recent interest rate hike has led to global market reactions, but UK markets remain relatively stable.

Calendar Events

Today's Releases:

• GBP GfK Consumer Confidence: Actual: -17, Forecast: -18, Previous: -19
• GBP CBI Distributive Trades: Actual: -44, Forecast: -26, Previous: -32

Remaining Today:

• No further significant economic releases today.

This Week Ahead:

• Monday 22nd: GBP Current Account - 07:00 - Forecast: -18.80B
• Monday 22nd: GBP GDP Growth Rate YoY Final - 07:00 - Forecast: 1.3%
• Monday 22nd: GBP GDP Growth Rate QoQ Final - 07:00 - Forecast: 0.1%
• Monday 22nd: GBP Business Investment QoQ Final - 07:00 - Forecast: -0.00
• Monday 22nd: GBP Business Investment YoY Final - 07:00 - Forecast: 0.01%

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 smooth as a well-tuned engine!