Interview with Bank of England Governor Mark Carney

The video discusses the recent interest rate hike by the bank and its positive implications for the economy. It highlights the low unemployment rate and balanced economic growth driven by business investment and exports. The bank aims to control inflation while supporting economic activity. The video also addresses the impact of Brexit on real incomes and the ongoing efforts to manage inflation and support wage growth.

What is one of the reasons the recent interest rate increase is considered a positive development?

• The economy is solely driven by household spending.

• Unemployment is at a 42-year high.

• The economy is experiencing balanced growth with contributions from business investments and exports.

• The global economy is weak.

What is the bank's main objective in adjusting the interest rates?

• To decrease business investments.

• To raise unemployment rates.

• To bring inflation down to a 2% target.

• To increase household spending.

How does the bank plan to support the economy while controlling inflation?

• By maintaining support for jobs and activities even after raising rates.

• By increasing interest rates to 5%.

• By completely stopping economic support.

• By focusing solely on household spending.

What has been the effect of inflation on real incomes post-Brexit?

• Real incomes have been squeezed due to inflation.

• There has been no change in real incomes.

• Wages have surpassed inflation rates.

• Real incomes have increased significantly.

What is the bank's approach to addressing the squeeze on real incomes?

• Reducing interest rates to zero.

• Supporting wage growth while managing inflation.

• Ignoring the issue and focusing on other economic factors.

• Increasing taxes to boost government revenue.