Broadbent: Neutral real rates will stay low for ‘some time’
Consequently any increase in BoE policy rate will be ‘limited and gradual’
Ben Broadbent argued that neutral real rates of interest in the UK are "likely to stay low for some time yet", during his speech at the Society of Business Economists annual conference last night.
The Bank of England (BoE) deputy governor said that neutral real rates – those that prevail when the economy is expanding at its trend rate and inflation is stable – will be slow to rise. As a result any rise in official policy rates is "likely to be limited and gradual".
"I would say neutral real
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