In written comments to lawmakers Bank of England’s Ben Broadbent says that it will be a challenge to normalise policy over the next 5 years and that BOE communications will need to be clear.

He also notes that the UK housing market is a potential risk to the economy.

It sure will be if 1000’s of people get crunched by rate rises.

  • QE helped reduce bond yields but other factors independent of central banks are keeping them low
  • Global risk free rates will stay at low levels
  • UK monetary policy has little impact on key markets
  • There’s a risk of volatility as stimulus is withdrawn