Carney Says Rate Hike Needed to Meet Inflation Goal

The video discusses the Monetary Policy Committee's (MPC) role in managing inflation, aiming to return it to the target level. It highlights temporary factors affecting inflation, such as the fall in sterling post-referendum. The current economic conditions, with high inflation and disappearing slack, suggest a need for interest rate adjustments. Additionally, Brexit's impact on the UK's trade, investment, and household incomes is explored.

What are the potential consequences of the referendum related fall in sterling?

What is the expected outcome if interest rates do not increase?