BOE Could Cut Rates for First Time in 7 Years

The video discusses the upcoming Bank of England rate decision, highlighting the UK's poor economic data and the need for aggressive monetary policy actions. It explores potential strategies like rate cuts and QE, and the challenges posed by the current mortgage market. The discussion also covers asset purchase options and the limitations of monetary policy in the current economic climate.

What is the main risk for the Bank of England according to the discussion?

• Doing too much with monetary policy

• Policy not being effective

• Reducing QE too soon

• Raising interest rates too quickly

What is the 'sledgehammer approach' in monetary policy?

• A focus on fiscal policy over monetary policy

• An aggressive and large-scale intervention

• A cautious and gradual approach

• A strategy to increase interest rates

What asset class might the Bank of England extend its purchases into?

• Corporate bonds

• Commodities

• Real estate

• Foreign currencies

Why is the effectiveness of rate cuts different post-financial crisis?

• Banks are more profitable

• More people have fixed-rate mortgages

• Interest rates are higher now

• The economy is more stable

What is a potential downside of QE mentioned in the discussion?

• It strengthens the currency

• It increases inflation

• It damages pension funds

• It reduces government debt