British finance minister Rishi Sunak will announce the heaviest public borrowing since World War Two when he spells out his spending plans next week after the biggest economic crash in over 300 years. Government borrowing this financial year is likely to be around 400 billion pounds, according to Citi, while HSBC has forecast 365 billion pounds. Citi predict an extra 800 billion pounds of borrowing over the next five years, compared with forecasts in March. For now financial markets are happy to fund the borrowing at almost record low interest rates. HSBC sees a further 100 billion pounds of gilt issuance this financial year, taking the total to a record 480 billion pounds, and up to 300 billion pounds more in 2021/22.

Source: Mint November 20, 2020 12:22 UTC