U.K. Economist Wood Says BOE Shouldn't Raise Rates

The transcript discusses the potential rate hike by the Bank of England, with arguments against it due to weak growth and lack of domestic inflation. The justification for the hike is based on supply pessimism and the belief that the UK economy can only grow at a limited rate. The discussion also covers future rate hike scenarios, the role of sterling in inflation, and market reactions to the Bank's decisions.

What are the main reasons mentioned against a rate hike by the Bank of England?

• Strong economic growth

• Peaked inflation and nonexistent wage growth

• High wage growth

• Increased consumer spending

How does Mark Carney and the MPC justify the need for a rate hike?

• Due to high consumer confidence

• To control excessive economic growth

• Because of supply pessimism and limited growth potential

• To boost the housing market

What is the expected scenario regarding future rate hikes according to the discussion?

• A series of rapid hikes

• One and done

• No hikes at all

• Immediate reduction in rates

What is the primary driver of the current inflation according to the discussion?

• Increased domestic demand

• Rising oil prices

• Sterling depreciation

• Government spending

What is the potential market reaction to the Bank of England's rate hike decision?

• Indifference to the Bank's words

• Immediate market crash

• Rapid increase in stock prices

• Complete trust in the Bank's decision