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"