Pantheon's Shepherdson Sees No Pressing Need for BOE to Hike Rates

The video discusses the inaccuracies in initial Brexit forecasts, emphasizing that not all future predictions will be wrong. It highlights the challenges of securing trade deals post-Brexit and the potential economic consequences. The discussion also covers market expectations regarding interest rate hikes by the Bank of England, influenced by recent economic data and Brexit developments. The video concludes with an analysis of inflation trends, suggesting that inflation may decrease faster than anticipated, affecting future interest rate decisions.

What mistake do some Brexiteers make regarding economic forecasts?

• They underestimate the importance of the EU.

• They rely solely on non-EU trade deals.

• They believe all forecasts are accurate.

• They think past errors mean future forecasts will also be wrong.

What is the likely outcome if the UK does not secure trade deals quickly after Brexit?

• The UK will experience economic growth.

• The UK will strengthen its ties with the EU.

• The UK will face economic challenges.

• The UK will become more self-sufficient.

What are the market expectations regarding the Bank of England's interest rate decisions?

• Rates will remain unchanged.

• Rates will decrease significantly.

• Rates may increase sooner than expected.

• Rates will be abolished.

What is the Bank of England's concern regarding inflation?

• Inflation will rise indefinitely.

• Inflation will have no impact on interest rates.

• Inflation will decrease too slowly.

• Inflation will decrease faster than anticipated.

Why might there be no immediate need for the Bank of England to raise interest rates?

• The UK has secured all necessary trade deals.

• Rapid disinflation is anticipated.

• Economic growth is slowing down.

• Inflation is expected to rise.