Yuan Yang Urges UK to Cut Inflation Risk as High Gilt Yields Constrain Policy
Updated
Updated · Financial Times · Jun 6
Yuan Yang Urges UK to Cut Inflation Risk as High Gilt Yields Constrain Policy
1 articles · Updated · Financial Times · Jun 6
Summary
Labour MP Yuan Yang said the real gap between politicians and bond markets is not ideology but a failure to focus on policies that lower borrowing costs sustainably.
2022’s mini-Budget still shapes that mistrust, she wrote, with volatile gilt markets and frantic commentary feeding political panic instead of long-term debate on debt reduction.
UK borrowing costs are higher than peers’ largely because the economy is exposed to inflation shocks, Yang argued, citing dependence on global oil and gas and calling for faster clean-power investment.
Low household demand is also depressing growth, she said, so making essentials such as energy, housing, water and transport more affordable should rely on supply-side investment, market reform and smarter regulation.
10-year gilt prices and other market signals are real constraints on government choices, Yang wrote, but both MPs and investors should back policies that improve resilience, demand and long-run growth.