BOE Not Hiking Rates Would Be a 'Scandal,' Says RBC's Lignos

The transcript discusses the Monetary Policy Committee's (MPC) decision to lift rates, highlighting the expectations set during the May meeting and the data alignment since then. It explores the impact of Brexit on market pricing and the potential for rate hikes. The discussion also covers market reactions, the importance of maintaining credibility, and the consequences of not hiking rates, emphasizing the pressure on the Bank of England to act decisively.

What was the MPC's expectation between May and August regarding rate hikes?

• They expected data to align with their predictions.

• They expected inflation to decrease significantly.

• They anticipated a significant economic downturn.

• They planned to lower rates.

How does Brexit influence the decision to raise rates?

• It makes it more urgent to raise rates immediately.

• It suggests a potential delay in raising rates.

• It has no impact on rate decisions.

• It requires a decrease in rates.

What economic factors are mentioned as influencing inflation?

• A stronger pound and reduced public sector pay.

• Increased exports and lower taxes.

• A weaker pound and public sector pay announcements.

• Higher interest rates and reduced government spending.

What is the market's expectation if the Bank of England does not hike rates?

• The pound will strengthen.

• The Bank will gain credibility.

• The pound will weaken and credibility will be lost.

• There will be no change in market perception.

What was the market's reaction to previous decisions by Mark Carney?

• The market was consistently aligned with his decisions.

• The market always anticipated his moves correctly.

• The market ignored his decisions.

• The market was often caught off guard.