Afternoon Rate Update

Headline

“PWLB Rates Take a Gentle Stroll: Just a 1bp Shift”

Notice Details

PWLB Interest Rate Notice Number 496/25, PM reset, issued at 12:30 on 22 December 2025.

Maturity Rates

• 1y: 4.65% (0)
• 2y: 4.72% (0)
• 3y: 4.80% (0)
• 5y: 5.01% (0)
• 10y: 5.59% (1)
• 25y: 6.21% (1)
• 50y: 5.98% (0)

Overall, rates have remained quite stable, with only a minor uptick of 1bp in the 10-year and 25-year rates, indicating a calm afternoon in the market.

Afternoon Context

Since this morning, the economic data released includes the GBP GDP Growth Rate YoY Final, which came in at 1.3%, matching forecasts, and the GBP Business Investment QoQ Final at 0.01%, slightly better than the forecast of -0.00%. The GBP Current Account also showed a less severe deficit than expected at -£12.10B. In the news, the CBI has warned of a looming recession as private sector output is expected to decline into Spring 2026, which may keep gilt yields under pressure. Overall, the market appears to be absorbing this information without significant movement in rates.

Calendar Events

RELEASES SO FAR TODAY:

• GBP GDP Growth Rate YoY Final - Actual: 1.3% (Forecast: 1.3%)
• GBP Business Investment QoQ Final - Actual: 0.01 (Forecast: -0.00)
• GBP Current Account - Actual: -£12.10B (Forecast: -£18.80B)

REMAINING TODAY:

• No further significant economic releases today.

THIS WEEK AHEAD:

• No further significant economic releases this week.

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.

Keep calm and carry on borrowing wisely!