Britain’s largest pension scheme will start investing in gilts for the first time in years, easing pressure on Jeremy Hunt as soaring returns lure some of the biggest funds into snapping up UK debt.
The National Employment Savings Trust (Nest), which looks after the retirement pots of a third of the British workforce, is planning an initial investment of hundreds of millions of pounds after years of shunning UK debt.
Nest’s decision comes after the Bank of England was forced to ramp up interest rate rises to try to keep a lid on inflation, which has proven to be more stubborn in the UK than other large economies.
Change the price and you change demand. Someone could get a Nobel for this…..