BOE Hikes Rates to Pre-Pandemic Level in 8-1 Vote

The transcript discusses the Bank of England's decision to raise rates by 75 basis points, with an 8 to 1 vote. Market reactions include a drop in two-year yields and a negative response from the pound. Inflation is around 8% and may rise, suggesting future rate hikes. The Bank of England faces challenges in decision-making due to potential growth impacts and the need for quantitative tightening at 1% rates. The market perceives the decision as more dovish than expected.

What was the vote count for the Bank of England's decision to raise rates?

• 9 to 0

• 7 to 2

• 6 to 3

• 8 to 1

How did the market react to the Bank of England's decision?

• The pound strengthened

• The stock market surged

• The two-year yield increased

• The pound weakened

What is the expected inflation rate in the second quarter?

• 7%

• 6%

• 5%

• 8%

What challenge does the Bank of England face compared to the Fed?

• Higher inflation

• Greater growth hit

• Lower interest rates

• Stronger currency

At what rate does the Bank of England consider starting quantitative tightening?

• 2%

• 1.5%

• 1%

• 0.5%