Brexit Prompts Policy Talk From BOE, ECB

The video discusses the preparedness of central banks like the Bank of England and ECB in handling financial crises, highlighting their proactive measures to reassure markets. It examines the ECB's preventative actions against rising yield spreads in countries like Portugal, Greece, and Spain. The impact of Brexit on financial markets is analyzed, noting that markets have largely shrugged off its effects. The video also speculates on the Fed's potential response to Brexit and its implications for rate hikes.

What is the primary focus of the ECB's preventative measures discussed in the video?

• Reducing inflation

• Addressing rising yield spreads in certain European countries

• Expanding the eurozone

• Increasing interest rates

Why might the ECB consider including Greek bonds in their purchases?

• To support countries with rising yield spreads

• To increase the euro's value

• To compete with the Bank of England

• To decrease the ECB's overall bond holdings

What is the ECB's concern regarding sovereign European debt?

• It has positive interest rates

• It has negative interest rates

• It is primarily held by non-European investors

• It is not affected by Brexit

How have financial markets reacted to central bank reassurances post-Brexit?

• By ignoring the reassurances

• By increasing interest rates

• With significant volatility

• By showing stability and confidence

What is the significance of the Fed's communication in the context of Brexit?

• To announce new monetary policies

• To compete with the ECB

• To align market expectations with their rate hike forecasts

• To increase the value of the dollar