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News · 17 June 2026

UK borrowing costs drop as inflation holds steady

UK borrowing costs drop as inflation holds steady

Japansses685 via Wikimedia Commons (CC0 1.0)

Britain's government borrowing costs fell at Europe's fastest pace, dropping more than twice as much as in France, Germany and Italy. This happened after official figures showed UK inflation surprisingly remained at 2.8pc in May, when analysts expected it to rise to 3pc. The unexpected news means the Bank of England is now less likely to raise interest rates, with some even suggesting future cuts.

By BriefTea Editorial ·

Reported by The Telegraph · How we write briefs

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