BOE's Bailey Vows to 'Stay the Course' on Inflation

The video discusses the UK's economic outlook, highlighting a shift from expected recession to modest growth due to falling energy prices and resilient economic activity. Inflation is projected to decrease, prompting a Bank rate increase to 4.5%. Revised growth projections show moderate economic growth, supported by survey evidence of improved consumer confidence and strong employment. Factors such as falling gas prices and fiscal policy are expected to positively impact GDP and potential supply.

What was the initial expectation for the economy months ago?

• A strong and rapid recovery

• A shallow but long recession

• A deep and short recession

• Stable economic growth

What is the primary reason for the expected sharp decline in inflation?

• Increased consumer spending

• Falling energy prices

• Higher interest rates

• Government subsidies

Why was the Bank rate increased to 4.5%?

• To boost consumer confidence

• To stabilize the housing market

• To increase government revenue

• To ensure inflation falls to the 2% target

What factor has contributed to the improved economic outlook?

• Increased trade barriers

• Falling wholesale gas prices

• Decreasing employment numbers

• Rising wholesale gas prices

What is the expected impact of fiscal policy on GDP?

• An increase of 2%

• A decrease of 1%

• No impact

• A peak impact of around 0.5%