Bitesize: UK real interest rates over the past three centuries
How low are UK real interest rates by historical standards? Using the Bank’s Millennium of Macroeconomic Data, I compute real bank rate, mortgage rates, and 10-year government bond yields over time.
The lines show the five year moving averages of the ex post real interest rate. The dots show the values over the years 2012 to 2016.
Figure 1: Real rates over time