PWLB briefing

Morning Rate Update

· By , PWLBtoday

Headline

PWLB Rates Shift Slightly as Markets Hold Their Breath

Notice Details

PWLB Interest Rate Notice Number 035/26
Rates reset at 09:13 on 27 January 2026.

Maturity Rates

  • 1y: 4.62% (1bp)
  • 3y: 4.80% (2bps)
  • 5y: 5.02% (2bps)
  • 10y: 5.57% (2bps)
  • 25y: 6.18% (2bps)
  • 50y: 5.96% (2bps)

Rates have seen minor adjustments, with the 1-year rate nudging up by 1 basis point, while the longer tenors remain relatively stable, suggesting a cautious market sentiment.

Market Context

The yield curve appears to be slightly upward sloping, indicating a modest increase in short-term borrowing costs compared to longer maturities. Today, the BRC Shop Price Inflation came in at 1.5%, significantly above the forecast of 0.8% and the previous 0.7%, which may influence market perceptions of inflation and future interest rate decisions. In the news, the ongoing tariff threats from the US against South Korea have stirred global market reactions, while the rise in gold prices above $5,000 reflects a shift towards safe-haven assets amid geopolitical tensions. These developments may be contributing to the cautious approach seen in the PWLB rates.

Calendar Events

TODAY’S RELEASES:

  • GBP BRC Shop Price Inflation - Actual: 1.5% (Forecast: 0.8%, Previous: 0.7%) - Significant as it indicates rising inflation pressures.

REMAINING TODAY:

  • GBP Treasury Gilt 2033 Auction - Due later today.

THIS WEEK AHEAD:

  • Thursday 29th: GBP Car Production YoY - Forecast: 0.07
  • Friday 30th: GBP Nationwide Housing Prices MoM - Forecast: 0.6%
  • Friday 30th: GBP Nationwide Housing Prices YoY - Forecast: 1.5%
  • Friday 30th: GBP Mortgage Lending - Forecast: 4.60B
  • Friday 30th: GBP Net Lending to Individuals MoM - Forecast: 4.20B
  • Friday 30th: GBP Mortgage Approvals - Forecast: 64.40k
  • Friday 30th: GBP BoE Consumer Credit - Forecast: 1.90B
  • Monday 2nd: GBP S&P Global Manufacturing PMI Final - Forecast: 51.6
  • Tuesday 3rd: GBP Treasury Gilt 2035 Auction - Due later.

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!

All briefings for 27 January 2026 · January 2026 archive · All PWLB briefings