Flanders: BOE Story Is Inflation, Short-Term Growth

The video discusses the current economic conditions, highlighting a better short-term growth outlook than previously forecasted. However, inflation is rising, influenced by Sterling and import prices. The market's assumption of tolerating any inflation rate is challenged, with Mark Carney indicating a shift. The UK faces fiscal stability concerns, with rising gilt yields and borrowing needs. Despite inflation, a medium-term growth hit from Brexit is expected.

What challenges does the UK face regarding its fiscal outlook and borrowing?

What is the expected impact of Brexit on medium-term growth according to the speaker?