LONDON (Reuters) - Britain's government will have to be nimbler in the way it manages the public finances if interest rates go up because government bonds carry shorter maturities than in the past, the head of the country's budget watchdog said on Wednesday.
“It just needs to be more alive to factors that might drive interest rates higher, and in effect what it means is that it needs to be more nimble with primary spending or non-interest spending if it wants to be able to respond to a sudden rise in interest rates,” Richard Hughes, chairman of the Office for Budget Responsibility, said.
(Reporting by David Milliken, writing by William Schomberg)
Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV. Learn more about Thomson Reuters products: