Major: No Central Bank Has Control Over Inflation

The transcript discusses the challenges faced by the UK economy post-Brexit, focusing on lending demand, inflation, and economic uncertainty. It highlights the differing predictions for UK inflation rates and the impact of global trade on inflation control. The potential for negative interest rates and the challenges they pose to banks, particularly in the context of the eurozone, are also explored.

What was the state of bank lending in the UK before the Brexit vote?

• It was declining rapidly.

• It was healthy.

• It was stagnant.

• It was non-existent.

What is one of the main concerns regarding the UK's economic future post-Brexit?

• Lack of demand and confidence.

• Over-reliance on technology.

• High unemployment rates.

• Excessive government spending.

What inflation rate did HSBC economists predict for the UK by the end of next year?

• 5%

• 4%

• 3.1%

• 2%

Why is it challenging for the Bank of England to control inflation?

• Because of its small size.

• Due to global trade influences.

• Due to high interest rates.

• Because it lacks authority.

What is a potential strategy for banks to offset negative impacts of low interest rates?

• Increasing learning and selling other products.

• Raising employee salaries.

• Reducing customer services.

• Cutting down on loans.