Mark Carney, governor of the Bank of England, said he had predicted the increase in longer-term interest rates priced in by the UK fixed income markets following the introduction of forward guidance by the Bank of England early last month.

The shift in the interest rate yield curve, characterised by a small fall in short-term interest rates and an increase in longer-term expected interest rates, has led to speculation that forward guidance has misfired or even failed.

In particular, critics have