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Pill: Bond yields expected to be "boosted" as growth expectations increase

BOE
  • Pill asked on gilt yields. Says won't comment on govt financing. Are concerned about how the transmission into the economy works. Haven't used interest rates as an instrument for some time - so need to monitor the impacts. Bond markets reflect concerns about growth. Through time bond yields will be "boosted" as growth expectations move higher.
  • Yesterday's hike will not be transformative for the housing market. Notes spread between mortgage rate and bank rate has fallen over the last year or so.

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