Debt Surge Leaves U.K. Exposed to Higher Short-Term Rates

(Bloomberg) -- Britain is on course to issue more debt than at any time since the financial crisis and much of it may end up with the Bank of England, which has massively expanded its bond-buying program in response to the coronavirus crisis. But that would still leave the public finances much more exposed to short-term interest rates, according to the Institute for Fiscal Studies. If the economy rebounds and rates rise, then so will the amount the government spends paying debt interest.

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