The U.K. Office for National Statistics’ decision to maintain its current approach to calculating its retail price index is “good news,” according to Andrew Bosomworth, managing director at Pacific Investment Management Co.
“There’s no breach of contract from a legal or financial perspective and that is good for confidence in Great Britain as a place to do business,” he said in an interview on Bloomberg Television’s “The Pulse” with Francine Lacqua and Guy Johnson. “A change of the contract could have consequences, obviously, as today’s price action suggests.”
U.K. 10-year inflation-linked gilts advanced today, pushing the yield on the securities to a record-low minus 0.99 percent. The rate was 31 basis points lower at minus 0.93 percent as of 9:29 a.m. London time.