Copper advanced for the first time in three days in London after Federal Reserve Chairman Ben S. Bernanke said the benchmark interest rate will remain low long after policy makers reduce bond purchases.
Federal Reserve Chairman Ben S. Bernanke said the labor market has shown “meaningful improvement” since the start of the central bank’s bond-buying program and that the benchmark interest rate will probably stay low long after the purchases end.
The blog of New York Times columnist Paul Krugman recently featured a chart plotting the U.K.’s ratio of government debt to gross domestic product against the nominal yield on long-term government bonds from about 1700 to the present. See Figure 1.
Central banks may fail to slow a real estate boom by raising interest rates, forcing them to use financial regulations instead to prevent a bubble, former U.K. Financial Services Authority Chairman Adair Turner said.