Morning Rate Update

Headline

PWLB Rates Take a Gentle Stroll: Minor Adjustments Across the Board

Notice Details

PWLB Interest Rate Notice Number 493/25
Rates reset at 09:16 on 19 December 2025.

Maturity Rates

• 1y: 4.64% (5bps)
• 3y: 4.78% (5bps)
• 5y: 4.99% (6bps)
• 10y: 5.55% (5bps)
• 25y: 6.17% (5bps)
• 50y: 5.94% (5bps)

Rates have seen slight increases, with the 5-year rate nudging up by 6 basis points, which is the most significant movement today.

Market Context

The yield curve remains relatively flat, indicating stable borrowing costs across different maturities. Today's economic data shows that public sector net borrowing came in at £11.65 billion, slightly above the forecast of £11.60 billion, which may influence market sentiment regarding government fiscal health. In the news, the Bank of England's recent rate cut to 3.75% has sparked discussions about its potential impact on inflation and growth, while retail sales figures released earlier today showed a modest year-on-year increase of 0.01%, aligning with forecasts. These developments suggest a cautious optimism in the market, although the overall economic landscape remains uncertain.

Calendar Events

Today's Releases:

• GBP Public Sector Net Borrowing: Actual: £11.65B, Forecast: £11.60B, Previous: £21.19B*
• GBP Retail Sales YoY: Actual: 0.01%, Forecast: 0.01%, Previous: 0.6%*

Remaining Today:

• Today 11:00: GBP CBI Distributive Trades - Forecast: -26 (Previous: -32)

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, keep your treasury operations as smooth as a well-oiled machine!