Mehta Says U.K. 2Q GDP Weakness On Horizon

The transcript discusses market expectations, stockpiling effects on GDP, and the impact of a weaker pound on competitiveness and exports. It explores potential actions by the Bank of England amid economic uncertainties, including rate cuts and quantitative easing. The conversation also covers currency movements, particularly the euro's rise against the pound, and their implications for the economic outlook.

What was a significant factor contributing to the stronger than expected GDP in the first quarter?

• Increased consumer spending

• Stockpiling activities

• Government subsidies

• Rising export volumes

How does a weaker pound affect the UK's export competitiveness?

• It significantly boosts export volumes

• It has a limited impact due to high import content

• It reduces import costs

• It leads to a trade surplus

What is one potential action the Bank of England might take in response to economic uncertainties?

• Increase interest rates

• Implement quantitative easing

• Reduce government spending

• Strengthen the pound

What is the market's expectation regarding the Bank of England's interest rate decision before Mark Carney's departure?

• Interest rates will be doubled

• Interest rates will remain unchanged

• Interest rates will be cut

• Interest rates will be increased

What could further weaken the pound according to the discussion?

• ECB easing and a no-deal Brexit

• Rising inflation rates

• A strong global economy

• Increased domestic demand