Bank of England to Step Up Talks on Negative Rates

The transcript discusses the Bank of England's monetary policy, focusing on maintaining the asset purchase target and the potential for negative interest rates. It highlights market expectations for further quantitative easing and rate cuts, especially in light of Brexit uncertainties. The conversation also touches on inflation concerns and the economic trajectory, with a particular focus on unemployment and the potential policy response to a no-deal Brexit.

What is the current asset purchase target set by the Bank of England?

• 745 billion sterling

• 600 billion sterling

• 500 billion sterling

• 1 trillion sterling

What economic event could lead to the Bank of England considering negative interest rates?

• An increase in employment

• A strong economic recovery

• A hard Brexit

• A decrease in inflation

What is a key difference between the Bank of England and the Federal Reserve as discussed in the video?

• Their approach to inflation

• Their asset purchase targets

• Their fiscal policy

• Their interest rate levels

What is one reason the UK economy might not be suited to negative interest rates?

• Strong economic growth

• Low unemployment rates

• High inflation rates

• The structure of the mortgage market

What is the likely policy response to a no-deal Brexit according to the discussion?

• Introduction of new taxes

• Cutting rates into negative territory

• Reduction in asset purchases

• Increase in interest rates