PWC's Sentance Sees Failure in U.K. Forward Guidance

The video discusses the impact of Brexit uncertainty on the value of Sterling, particularly against the Euro and the Dollar. It highlights the role of the Bank of England's monetary policy and contrasts it with the Fed's approach. The discussion moves to the concept of forward guidance, critiquing its effectiveness in the UK. The speaker argues that central banks, including the Bank of England, have been slow to adjust interest rates post-financial crisis, remaining in a 'bunker' mentality. The video concludes with a metaphorical depiction of the Bank of England's decision-making environment.

What factors are mentioned as holding down the value of Sterling against the Euro?

• High inflation rates in the UK

• Strong economic growth in the UK

• Brexit uncertainty and Bank of England's interest rate policy

• Increased exports from the UK

How does the speaker view the effectiveness of forward guidance in the UK?

• As partially effective

• As a failure

• As a successful strategy

• As irrelevant

What is the speaker's opinion on the Federal Reserve's approach to interest rates?

• Inconsistent and unpredictable

• Too aggressive

• Consistent and gradual

• Too conservative

What is a major challenge for central banks since the financial crisis, according to the speaker?

• Moving away from emergency interest rates

• Reducing staff numbers

• Implementing new technologies

• Increasing transparency

What humorous comparison is made about the Bank of England's decision-making environment?

• A spaceship

• The Churchill War Rooms

• A medieval castle

• A circus tent