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BoE's Bell on real interest rates and inflation

In the speech 'A matter of no small interest: Real short-term interest rates and inflation since the 1990s' given on 2 March, Marian Bell of the Bank of England said the level of interest rates consistent with full employment and a stable economy has probably fallen in the past 15 years.

In her speech at Cranfield University, Bell said low inflation had helped to bring down interest rates but even after adjusting for inflation, real interest rates could be lower now without sparking inflationary

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