Investors think Britain has a bigger inflation problem than the United States, which explains why British government bond yields have risen by more than their U.S. counterparts, Bank of England Deputy Governor Dave Ramsden said on Thursday.

The benchmark 10-year British gilt currently yields about 30 basis points more than the equivalent U.S. Treasury. For almost all of the previous eight years, these gilts had yielded less than Treasuries.

"My take on this is that there is more of a concern about persistence of inflation (in Britain) and therefore an expectation that our short-term (interest) rate - set by us - will be higher. That feeds through into yields," Ramsden told lawmakers from parliament's Treasury Committee.

The scale of issuance of British government bonds was another factor, Ramsden said, adding that some investors could still feel reluctance towards gilts because of the market turmoil triggered last September by the economic agenda of former prime minister Liz Truss. (Reporting by Andy Bruce; editing by David Milliken)