Interest rates on government bonds and across the whole spectrum of finance will more than double over the next decade, pushing Britain back towards 1970s-style levels, according to an authoritative new study.
The combined effects of an ageing population and a more unstable economy will lift the cost of borrowing radically in the coming years, Barclays has warned. In its closely-watched Equity Gilt Study, the lender predicted the average long-gilt yield – the government interest rate which effectively influences borrowing costs across the entire economy – would rise from its current level of around 4pc to 10pc or beyond.
According to Tim Bond, of Barclays Capital, the increase in yields will be a direct result of the sharp increases in government deficits likely as the populations of Western economies age, and older workers retire, dampening broader growth.
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The combined effects of an ageing population and a more unstable economy will lift the cost of borrowing radically in the coming years, Barclays has warned. In its closely-watched Equity Gilt Study, the lender predicted the average long-gilt yield – the government interest rate which effectively influences borrowing costs across the entire economy – would rise from its current level of around 4pc to 10pc or beyond.
According to Tim Bond, of Barclays Capital, the increase in yields will be a direct result of the sharp increases in government deficits likely as the populations of Western economies age, and older workers retire, dampening broader growth.
You can
or read more at CyberToryGraph
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