LONDON (Reuters) - Bank of England Deputy Governor Ben Broadbent said he was not very concerned that financial markets were not pricing in the same amount of interest rate increases that the BoE expects will be needed over coming years.
“I think the markets understand them very well,” he said when asked by a lawmaker about the central bank’s messages. “But that doesn’t mean that they have to agree with everything in the forecasts. Markets will take their own view.”
“I am not particularly exercised that the future path of interest rates in the market should be exactly the one that is in our forecasts,” he told parliament’s Treasury Committee.
Markets understood the BoE’s communications well, but did not always agree with its forecasts or the assumptions that lay behind them, Broadbent added.
Reporting by David Milliken; Editing by William Schomberg
Our Standards: The Thomson Reuters Trust Principles.