Why British Borrowing Costs Just Overtook Germany's—For the First Time in 17 Years

Britain's government is now paying more to borrow than Germany—4.925% versus 2.841%. That's the highest British rate since 2008. The difference stems from two choices: the UK is cutting spending and controlling interest rates alone, while Europe is bringing inflation down and the European Central Bank is moving cautiously. European countries' borrowing costs are no longer moving in lockstep.