Why the Bank of England Doesn’t Want to Hike Rates

The transcript discusses the Bank of England's growth and inflation forecasts, the impact of Brexit, and the challenges of maintaining credibility amidst inflationary pressures. It highlights the shift in unemployment rate assumptions and the potential for wage increases. The discussion also touches on the global trend of moving from central bank-driven policies to fiscal policy, with examples from the US, China, and Japan.

What was the growth upgrade discussed in the first section?

• From 1.4% to 2%

• From 2.5% to 3%

• From 1% to 1.5%

• From 2% to 3%

Why is there a potential credibility issue for the Bank of England?

• Because unemployment rates are too high

• Because inflation might stay above 2% longer than expected

• Because inflation is expected to remain below 1%

• Because growth rates are declining

What is the Bank of England's assumption about wage responses to inflation?

• Wages will decrease significantly

• Wages will remain constant

• Wages will not respond much to inflation

• Wages will increase rapidly

What might happen if inflation exceeds 3% according to the second section?

• The Bank of England will lower interest rates

• The Bank of England will have to explain the deviation to the chancellor

• The Bank of England will increase growth targets

• The Bank of England will ignore the inflation rate

What is replacing central banks in some countries according to the final section?

• Monetary policy

• Trade agreements

• Fiscal policy

• Cryptocurrency