BOE's Broadbent: Long-run fall in interest rates not due to BOE policy
Comments from Bank of England Deputy Governor Ben Broadbent at a Parliamentary committee
- Low rates not due to monetary policy
- Cannot find evidence that cost of capital has risen more for firms with pension deficits that for others
- Possible that regulation is pushing pension funds too much towards lower yielding assets
Broadbent has spoken twice today already.
- UK inflation is likely to rise over 2% in next two years
- Hiking UK rates to meet inflation target could lead to "undesirable consequences"