BOE Raises Benchmark Interest Rate to 1% in 6-3 Vote

The video discusses the recent interest rate hike to 1% by the City of London, highlighting the market's reaction and the unexpected MPC vote outcome. It explores the impact on sterling and UK two-year yields, and speculates on future rate hikes and quantitative tightening (QT) details. The market anticipates hikes at every rate-setting meeting until the year's end, with a terminal rate of 2.65% expected by mid-next year. The video also raises questions about the sequencing and pace of QT.

What was the recent interest rate hike by the City of London?

• 2%

• 1.5%

• 1%

• 0.5%

How did the MPC members vote on the interest rate hike?

• All voted for a 50 basis point hike

• All voted for a 25 basis point hike

• Six voted for a 50 basis point hike, three for a 25 basis point hike

• Three voted for a 50 basis point hike, six for a 25 basis point hike

What was the immediate market reaction to the interest rate hike?

• Sterling fell and yields decreased

• Sterling fell and yields increased

• Sterling rose and yields increased

• Sterling remained stable and yields decreased

What is the market's projected terminal rate for next year?

• 2.65%

• 3.0%

• 1.5%

• 2.0%

What are the key questions surrounding the future of quantitative tightening (QT)?

• What will be the impact on the US market?

• How will the MPC vote in the future?

• What will be the new interest rate?

• When will it start and how will it be sequenced?