XPS sees gilt market volatility staying elevated amid persistent inflation

• XPS Group’s Nov. 5, 2026, analysis found higher gilt yields have improved funding levels for many pension schemes.
• The Bank of England’s widely expected rate increase of 0.25 percentage points brought its policy rate to 4%.
• UK CPI rose to 3.5% in September, remaining above the central bank’s 2% target.
• Gilt yields rose sharply through September and early October; John Healey’s fiscally disciplined Autumn Budget helped reverse some increases.
• Persistent inflation and geopolitical uncertainty are likely to keep gilt market volatility elevated, limiting the benefits of higher yields for pension schemes.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. XPS Pensions Group plc published the original content used to generate this news brief on November 05, 2026, and is solely responsible for the information contained therein.