In my opening remarks today I will touch briefly on monetary policy and bond market issues. 2. Monetary policy developments  As you are all no doubt aware, monetary policy does not determine bond market yields. Nevertheless, monetary policy and the bond markets do impact on each other in important ways.
Expected monetary policy developments are reflected in bond yields and we, in turn, get a lot of information from the bond market about market expectations concerning future monetary policy, inflation and growth. More recently, the development of the inflation-linked bond market has provided us with further insights into longer-term inflation expectations in the market.