BOE Needs Scope to Cut If Brexit Leads to Recession, JOHCM Says

The video discusses the current state of gilt market yields and the potential impact of Brexit on the economy. It highlights the global trend towards zero interest rates, with the Nordics as an exception, and the possibility of a recession. The discussion emphasizes the importance of central banks maintaining flexibility in their strategies due to uncertainties, particularly in England, and advises against preemptive rate changes.

What is the current yield on the 10-year gilt market as mentioned in the video?

• 90 basis points

• 85 basis points

• 81 basis points

• 76 basis points

What is a potential consequence of Brexit on the UK economy as discussed in the video?

• Economic growth

• Increased inflation

• Stable interest rates

• A possible recession

Why should central banks avoid preemptive interest rate changes according to the video?

• To follow market trends

• To keep their power to adjust rates during a crisis

• To avoid unnecessary economic slowdown

• To maintain market confidence

What is the suggested approach for central banks in dealing with market pressures?

• Increase interest rates

• Follow market trends closely

• Ignore market pressures and focus on data

• Decrease interest rates

What is the main reason for the uncertainty in England as mentioned in the video?

• Economic policies

• Technological advancements

• Brexit and political changes

• Global market trends