Davies: Post-Brexit Pound Impact an Enduring Change

The video discusses the preparedness of the Bank of England post-2008, highlighting effective market functioning and liquidity lines. It examines economic forecasts, noting a decline in UK growth predictions and the impact on banks. The discussion shifts to exchange rate changes post-Brexit, suggesting a medium-term effect on Sterling. Finally, it addresses the perception of the UK as a riskier investment due to political instability, likening it to a higher beta stock.

How did the Bank of England prepare for market liquidity issues?

• By increasing interest rates

• By establishing liquidity lines

• By reducing taxes

• By buying foreign currency

What is the current consensus forecast for the UK economy?

• An increase by 1.7% this year

• A decrease by 2% next year

• A decrease by half a point this year

• An increase by half a point next year

Why might banks suffer in the current UK economic climate?

• Because of higher taxes

• As a result of their exposure to the UK economy

• Due to increased competition

• Because of reduced interest rates

What is a likely enduring change in the UK economy post-Brexit?

• A return to pre-Brexit exchange rates

• A stable political environment

• A change in the exchange rate

• An increase in foreign investments

How is the UK perceived in terms of investment risk post-Brexit?

• As a stable investment

• As a low-risk investment

• As a high-risk investment

• As a safer investment