Morning Rate Update

Headline

PWLB Rates Take a Gentle Dip – Not Quite a Splash!

Notice Details

PWLB Interest Rate Notice Number 019/26, AM reset, published at 09:11 on 15 January 2026.

Maturity Rates

• 1y: 4.55% (-1bps)
• 3y: 4.66% (-2bps)
• 5y: 4.86% (-2bps)
• 10y: 5.42% (-2bps)
• 25y: 6.04% (-2bps)
• 50y: 5.84% (0bps)

Rates have generally decreased by 1 to 2 basis points across the board, with the 50-year rate holding steady—perhaps it’s enjoying a leisurely day at the beach!

Market Context

The yield curve remains relatively flat, with minor reductions in rates across most maturities. Today's economic data has shown the UK economy growing by 0.3% in November, surpassing the forecast of -0.1%. This positive growth could influence investor sentiment towards UK gilts, potentially leading to further adjustments in borrowing costs. Additionally, the news highlights a drop in UK borrowing costs to their lowest level in over a year, driven by improved government finances and expectations of interest rate cuts. However, the overall market remains cautious as businesses await clarity on future fiscal policies.

Calendar Events

TODAY’S RELEASES:

• GBP GDP MoM - Actual: 0.3% (Forecast: -0.1%, Previous: -0.1%) - This positive growth is significant as it may bolster confidence in UK economic stability.
• GBP GDP YoY - Actual: 1.4% (Forecast: 0.8%, Previous: 1.1%) - A stronger year-on-year growth indicates resilience in the economy.

REMAINING TODAY:

• GBP NIESR Monthly GDP Tracker - Due at 12:00 (Forecast: -0.1%)

THIS WEEK AHEAD:

• Tuesday 07:00: GBP Average Earnings excl. Bonus (3Mo/Yr) - Previous: 4.6%
• Tuesday 07:00: GBP Unemployment Rate - Previous: 5.1%

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!