Inflation expectations on the government bond market are reassuringly stable, Bank of England Monetary Policy Committee member Ben Broadbent said on Thursday.
In an interview with CNBC, Broadbent said the main reason gilt yields had fallen so sharply over the last year was because of the euro zone debt crisis.
As far as the MPC is concerned, what ultimately matters is not so much the real yield, but inflation expectations built into the yield curve. I have been reassured that those inflation expectations remain pretty stable, he said.
(Reporting by Fiona Shaikh)