Mark Carney Makes his First Inflation Report

The video discusses the Bank of England's stance on maintaining low interest rates until unemployment falls below 7%. It addresses concerns about potential housing bubbles due to policies like Funding for Lending and Help to Buy. The Financial Policy Committee is tasked with monitoring risks to the economy and advising on monetary policy adjustments. The video also acknowledges the challenges faced by savers due to low interest rates and quantitative easing, expressing sympathy for their situation.

What is the current Bank rate mentioned in the video, and what condition is required for its increase?

• 0.75% and housing market stability

• 0.5% and unemployment rate decrease

• 2% and GDP growth

• 1% and inflation control

What is one of the main concerns associated with low interest rates and lending schemes?

• Increased inflation

• Decreased consumer spending

• Creation of a housing bubble

• Higher unemployment rates

What is the primary role of the Financial Policy Committee as discussed in the video?

• To set interest rates

• To monitor financial stability and alert the Monetary Policy Committee

• To regulate international trade

• To manage government spending

What measure might the Financial Policy Committee take if a housing bubble is detected?

• Decrease taxes on housing

• Require banks to hold more capital against certain sectors

• Extend lending schemes

• Increase interest rates

How does the video describe the impact of low interest rates on savers?

• Savers benefit from higher returns

• Savers receive government subsidies

• Savers face challenges due to low returns

• Savers are unaffected by interest rates