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Bailey says equilibium rate will settle somewhere "in the middle" between here and 0%

BOE

Bailey asked on equilibrium rate.

Says in the long-run for a small, open economy the UK would take the global rate.Says in the shorter term cycical equilibrium rate - there are reasons to think it has gone up. Labour market is tight. We have restrictive monpol, inflation is coming down and UnE is not going up - that's a good thing but interesting. So think short term equilibrium rate. Where will it settle? Don't think going back to zero but not as high as today - somewhere in the middle with a real positive interest rate.

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