HSBC's Major Says BOE Can’t Go Far With Yield Curve

The video discusses the negative real yields on gilts in Europe, focusing on the Bank of England's dovish stance and its implications for interest rates. It compares the UK and US yield curves, highlighting the challenges of hiking rates with a flat curve. The impact of inflation on real yields is examined, with predictions on future inflation and yield changes, suggesting that real yields may become less negative over time.

What implications does a flat yield curve have for potential interest rate hikes?

In what way might inflation be considered transitory according to the text?