Borrowing costs increased independently of the new savings product. They were rising well before it was announced and increased further because the market priced in a higher level of inflation following the sharp depreciation.
The higher rate on deposits that the new saving scheme offers doesn't increase funding costs for banks in anyway. The Treasury literally pays the depositors the extra yield, not the banks.
The higher rate on deposits that the new saving scheme offers doesn't increase funding costs for banks in anyway. The Treasury literally pays the depositors the extra yield, not the banks.