Mini-budget risk premium ‘pretty much gone’ but some investors still need ‘convincing’, says Bailey

Speaking to the treasury select committee today, Bank of England governor Andrew Bailey gave an update on Britain’s finances.

Responding to a question from SNP MP Alison Thewliss, Mr Bailey said: “Look I have to be honest, I think, you know, it’s going to take some time to, you know, convince everybody that we’re sort of back to where we were before [the mini budget]”.

Commenting specifically on the interest rates “premium” applied to UK assets after the mini budget, Mr Bailey added: “I think what we saw, to the events in late September/early October … was that we saw a risk premium enter into the interest rate curve. Now my judgement would be that that is pretty much gone now actually”.