Afternoon Rate Update

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

Headline

PWLB Rates Take a Dip, Markets Remain Calm

Notice Details

PWLB Interest Rate Notice Number 004/26
Effective for transactions agreed after 12:17 on 05 January 2026.

Maturity Rates

• 1y: 4.57% (-1)
• 3y: 4.76% (-1)
• 5y: 4.98% (-1)
• 10y: 5.56% (-2)
• 25y: 6.18% (-1)
• 50y: 5.94% (-2)

The 10-year rate has decreased by 2 basis points, reflecting a slight easing in borrowing costs.

Afternoon Context

This morning’s economic data showed UK consumer credit at £2.08 billion, significantly above the forecast of £1.20 billion, indicating robust borrowing activity. However, mortgage approvals fell slightly to 64.53k, just below the forecast of 64.80k. In the news, geopolitical tensions continue to influence markets, particularly following the US's actions in Venezuela, which have led to fluctuations in oil prices. Despite these developments, UK gilt yields remain stable, with little reaction to the afternoon's data releases.

Calendar Events

RELEASES SO FAR TODAY:

• GBP BoE Consumer Credit - Actual: £2.08B (Forecast: £1.20B)
• GBP Mortgage Approvals - Actual: 64.53k (Forecast: 64.80k)
• GBP Mortgage Lending - Actual: £4.49B (Forecast: £4.70B)
• GBP Net Lending to Individuals MoM - Actual: £6.60B (Forecast: £5.60B)
• GBP M4 Money Supply MoM - Actual: 0.01 (Forecast: 0)

THIS WEEK AHEAD:

• Tomorrow, 00:01: GBP BRC Shop Price Inflation - Forecast: 1.0%
• Tomorrow, 09:00: GBP New Car Sales YoY - Forecast: -0.01
• Tomorrow, 09:30: GBP S&P Global Composite PMI Final - Forecast: 52.1
• Tomorrow, 09:30: GBP S&P Global Services PMI Final - Forecast: 52.1
• Wednesday: GBP S&P Global Construction PMI - Forecast: 40.1
• Wednesday: GBP Treasury Gilt 2031 Auction
• Thursday, 07:00: GBP Halifax House Price Index MoM - Forecast: 0.1%
• Thursday, 07:00: GBP Halifax House Price Index - Forecast: 1.0%
• Thursday, 10:00: GBP BBA Mortgage Rate - Forecast: 6.6%

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!