MNI BRIEF: BOE Bailey Sees Global Equilibrium Rate Staying Low

The key factors that have driven down the global equilibrium interest rate, R*, are likely to persist and the rate is likely to stay low, Bank of England Governor Andrew Bailey said Tuesday.

Bailey stressed, however, in a speech at an OMFIF event, that the R* was not a guide to current policy setting and said that there was no read across to what the Monetary Policy Committee would do in coming months.

"The key drivers of Global R*, particularly increasing longevity, are expected to persist .. So it is not unreasonable to expect that Global R*, the long-run anchor for UK equilibrium interest rates, will remain low," he said.