ECB Unlikely to Remove Policy Accommodation Soon: StanChart

The video discusses inflation trends in the US, Europe, and the UK, highlighting factors like reopening impacts, commodity prices, and supply disruptions. It examines the Fed's cautious approach to tapering and potential policy mistakes. The European outlook focuses on the ECB's stance and Italy's economic reforms. The UK section addresses COVID-19's impact and inflation challenges, with the Bank of England expected to raise rates ahead of the ECB.

What is the expected core inflation rate after accounting for reopening impacts?

• 3.5%

• 2.5%

• 4.5%

• 1.5%

What is a potential risk for the Fed regarding inflation?

• Reducing bond purchases too slowly

• Raising interest rates too late

• Increasing taxes too quickly

• Ignoring inflation as transitory

What is the expected spread between Italian and German bonds according to Commerzbank?

• 100 basis points

• 75 basis points

• 125 basis points

• 50 basis points

What is the ECB's likely action regarding QE?

• End QE by March next year

• Extend QE into the third quarter of next year

• Reduce QE purchases significantly

• Increase QE purchases immediately

What is a major uncertainty for the UK economy?

• Impact of reopening on the pandemic

• Lack of government support

• High unemployment rates

• Decline in export markets

What is the Bank of England expected to do ahead of the ECB?

• Lower interest rates

• Cut government spending

• Raise interest rates

• Increase QE purchases

What is a concern regarding wage growth in the UK?

• Wage growth is uniform across all sectors

• Wage growth is rapidly increasing in some sectors

• Wage growth is declining

• Wage growth is stagnant