The surge in gilt yields above the level reached after the Truss/Kwarteng mini-budget last September has pushed mortgage rates even higher and illustrates that most of the drag on real activity and inflation from higher interest rates has yet to be felt. And the heat in the housing rental market, which has pushed CPI rents inflation to a 29-year high, illustrates the persistence of domestic inflation. The latter is one reason why the Bank of England has more work to do.
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