BoE's Ramsden: Rise in bond yields driven by improved economic prospects

Following the Bank of England's (BoE) decision to leave the policy rate and the Asset Purchase Facility unchanged at 0.1% and £895 billion, respectively, BoE Deputy Governor Dave Ramsden is delivering his remarks on the policy outlook.

Key quotes

"Rise in 5-year-5-year inflation forwards is seen in UK, eurozone and US."

"Rise in UK bond yields driven by real rates more than inflation compensation."

"Rise in bond yields driven by improved economic prospects."

Meanwhile, Governor Andrew Bailey noted that they should not get carried away by the recovery and added that the UK has lost two years of output growth during the coronavirus pandemic.