Bank governor signals further rate hikes if inflation ‘persistent’

The video discusses the conditional nature of economic forecasts, emphasizing their reliance on financial market prices and policies. It highlights the need to adapt forecasts to economic shocks, referencing a recent inflation figure that exceeded expectations. The video anticipates a sharp decline in inflation due to falling energy prices, with new data expected soon.

Why are economic forecasts described as conditional?

• They do not change over time.

• They are always accurate.

• They rely on financial market prices and policies.

• They are based on fixed assumptions.

What was the inflation figure for March compared to expectations?

• It was lower than expected.

• It was not measured.

• It matched the expectations.

• It was higher than expected.

What was the percentage point difference between the expected and actual inflation figures for March?

• 0.8 percentage points

• 1.0 percentage points

• 0.5 percentage points

• 1.2 percentage points

What is one reason given for the expected decline in inflation?

• Increase in energy prices.

• Decrease in energy prices.

• Stable energy prices.

• Unchanged energy prices.

When is the April inflation number expected to be released?

• Next Monday

• Next Tuesday

• Next Wednesday

• Next Thursday