Post by Barclays

In a new Barclays Group Policy Development report published today, we recommend a policy lever that could help lower the UK government’s cost of borrowing: excluding ‘unencumbered’ gilts from the leverage ratio calculation. Our analysis suggests this could:   ➡️ Increase demand for UK gilts from UK banks by an estimated £150bn over time ➡️ Lower the government’s debt-servicing costs by £2.5bn a year, all else being equal ➡️ Free up resources that the government could deploy in the UK economy   🔗 Read the full report to explore our analysis and recommendations for reform here: https://lnkd.in/ekqpABbi