BOE Can't Afford Not to Deliver Rate Hike, Says Dixon

The transcript discusses the Central Bank's decision to potentially raise interest rates, driven by market expectations and the need to stabilize sterling and control inflation. Despite economic slowdown and Brexit risks, a rate hike is seen as justified due to current economic growth levels. The Bank of England aims to reverse the rate cut post-EU referendum. Additionally, the UK consumer's credit binge amidst stagnant wage growth is highlighted, with concerns about its impact on consumption and GDP.

What is the market's expectation regarding the Central Bank's interest rate decision?

• No change in interest rates

• A rate hike with a 90% probability

• A rate cut with a 90% probability

• A rate hike with a 50% probability

Why might the Bank of England be cautious about future rate hikes?

• Because of decreasing inflation

• To encourage more consumer spending

• Due to rapid economic growth

• To avoid being too aggressive

What is the current interest rate mentioned in the discussion?

• 1.5%

• 0.5%

• 1.0%

• 0.25%

What trend is observed among UK consumers despite stagnant wage growth?

• Stable consumption levels

• Increasing credit usage

• Increasing savings

• Decreasing credit usage

What might happen if UK consumers become less willing to extend credit?

• An increase in consumption

• A sharper slowdown in consumption

• No change in economic activity

• A boost in wage growth