British borrowing surges, pound hits

The pound is about to hit its biggest two-day decline since the end of July, down 0.9% to $1.351. Previously, UK public debt surged to 83.8 billion pounds, 11.4 billion pounds higher than expected, and the Bank of England kept interest rates unchanged in a high inflation environment. Finance Minister Rachel Reeves faces increasing pressure ahead of the November budget release and the government is expected to raise taxes again to achieve fiscal targets. Meanwhile, UK bond yields rose, with 30-year UK Treasury yields rising 4.3 basis points to 5.547%.