BOE's Carney Says `Let Exchange Rate Do Its Job' on Brexit

The video discusses the UK's floating exchange rate policy and its non-intervention stance for monetary policy purposes. It highlights the economic adjustments due to Brexit, including potential trade shocks and lower relative incomes. The market's reaction to the Brexit referendum is examined, noting the quick adjustment to new economic realities. The video outlines conditions for potential market intervention, emphasizing that it would only occur under extreme circumstances. Finally, it confirms the availability of tools and authority for action if needed.

What is the primary focus of the UK's monetary policy as discussed in the first section?

• To increase relative incomes in the UK

• To maintain price stability and support the economy

• To intervene in the market for monetary policy purposes

• To maintain a fixed exchange rate

How did the market initially react to the Brexit referendum according to the second section?

• Expectations were wrong but adjusted quickly

• The market was chaotic and disorderly

• Expectations were accurate from the start

• The market had high confidence in the outcome

What was the market's behavior like during the Brexit referendum?

• It was chaotic with no clear direction

• It was stable with no significant changes

• It was orderly with high volumes

• It was disorderly with low volumes

Under what circumstances might the Bank consider intervening in the market?

• To stabilize relative incomes

• In extreme circumstances affecting market functioning

• To adjust the terms of trade

• To influence monetary policy

What tools and authority does the Bank have to take action if necessary?

• Sufficient tools and authority

• No tools or authority

• Limited tools and no authority

• Only verbal interventions