-OBR: BOE Guidance Change To Cut Debt Payments, Up Net Debt
LONDON (MNI) - The Bank of England's new guidance on when it is likely to
unwind quantitative easing helped the Office for Budget Responsibility to cut
its forecasts for future debt interest payments.
The OBR's detailed figures underpinning the Autumn Statement, released
Wednesday, showed how lower debt interest payments, due to both lower projected
gilt yields and the BOE's forecast changes, helped Chancellor of the Exchequer
George Osborne balance the books before the public finances move into surplus by
The OBR said projected debt interest payments were "significantly lower
than in July (its prior forecast)."
It said this was because market expectations for Bank Rate and gilt