BOE's Carney Says U.K. Needs `Modest' Tightening

The video discusses changes in the UK's monetary policy over two years, highlighting the initial measures taken by the MPC to support the economy during Brexit uncertainties. It explains the economic conditions two years ago, including low inflation and business confidence, and the current situation with high employment and limited spare capacity. The MPC's decision to modestly tighten monetary policy is aimed at maintaining inflation at the 2% target. The video also covers the UK's economic growth, expected to continue at a steady pace, with business investment expanding despite Brexit-related uncertainties.

What was one of the initial measures taken by the NPC two years ago to address economic uncertainty?

• Raising the Bank rate to 3%

• Cutting the Bank rate to a historic low

• Reducing government spending

• Increasing taxes on imports

Why did the NPC decide to support jobs and activities during the period of heightened uncertainty?

• To increase the Bank rate

• To extend the horizon for inflation to return to target

• To reduce the number of jobs

• To decrease the value of sterling

What is one of the current economic conditions mentioned in the transcript?

• High unemployment rates

• Decreasing real wages

• Increasing external price pressures

• Limited spare capacity in the economy

What is the expected annual growth rate for business investment over the forecast period?

• 4%

• 5%

• 3.5%

• 2%

What factor is expected to support household consumption growth?

• Rising inflation rates

• High unemployment rates

• Decreasing real incomes

• Continued support from external demand