BOE Sees Slower Than Anticipated Consumption Growth

The transcript discusses the UK's economic outlook post-Brexit, highlighting the MPC's projections based on a smooth transition. It notes divergent responses from financial markets and households, with consumer strength and market pessimism expected to align over time. Economic indicators show slowed growth, but Sterling's appreciation suggests optimism for an orderly Brexit. The global outlook has improved, supporting UK trade and investment, with world growth projections remaining strong.

What was the initial reaction of financial markets compared to households regarding the UK's decision to leave the EU?

• Financial markets were optimistic, while households were pessimistic.

• Financial markets were pessimistic, while households were optimistic.

• Both were pessimistic about the future.

• Both were optimistic about the future.

What economic trend was observed with wage growth and inflation?

• Wage growth increased while inflation decreased.

• Both wage growth and inflation increased.

• Both wage growth and inflation decreased.

• Wage growth moderated while inflation picked up.

How did the appreciation of Sterling relate to market expectations?

• It showed no relation to Brexit expectations.

• It was due to unrelated global factors.

• It suggested expectations of a more orderly Brexit process.

• It indicated expectations of a chaotic Brexit.

What is the expected growth rate for the UK in 2017 according to the MPC's central forecast?

• 1.5%

• 3.0%

• 1.9%

• 2.5%

What factors are likely to support UK trade according to the final section?

• Weaker global outlook and Sterling's past appreciation.

• Stronger global outlook and Sterling's past appreciation.

• Weaker global outlook and Sterling's past depreciation.

• Stronger global outlook and Sterling's past depreciation.