Morning Rate Update

Headline

“PWLB Rates Hold Steady: A Calm Before the Storm?”

Notice Details

PWLB Interest Rate Notice Number 495/25, AM reset, issued at 09:12 on 22 December 2025.

Maturity Rates

• 1y: 4.65% (0)
• 3y: 4.80% (0)
• 5y: 5.01% (1)
• 10y: 5.58% (1)
• 25y: 6.20% (1)
• 50y: 5.98% (2)

Rates are largely unchanged, with only minor adjustments across the curve. The 50-year rate saw a slight dip of 2bps, which is hardly a dramatic shift but noteworthy for those with a long-term view.

Market Context

The yield curve remains relatively flat, indicating stability in borrowing costs for Local Authorities. Today's economic data included the GBP Current Account, which came in at -£12.10B, better than the forecast of -£18.80B, suggesting a less severe deficit than anticipated. This could provide some support for gilt prices. Additionally, the UK economy is facing a downturn, as highlighted by the CBI's report indicating that private sector output is expected to decline into Spring 2026. This backdrop of economic caution, combined with the ongoing geopolitical tensions, may keep investors on edge, influencing future rate movements.

Calendar Events

TODAY’S RELEASES:

• No significant economic releases scheduled.

REMAINING TODAY:

• No significant economic releases scheduled.

THIS WEEK AHEAD:

• No significant economic releases scheduled.

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!