Bank of England Signals Rate Hikes Aren't Over

The Bank of England (BOE) has raised the benchmark interest rate to 4%, the highest since 2008, amid ongoing inflation concerns. While the BOE hints at a slower pace of future hikes, inflation risks remain. Economic forecasts have improved slightly, but a recession is still expected, with GDP projected to drop by 1% over the next five quarters. The UK economy may not recover to pre-pandemic levels until 2026.

What is the current benchmark interest rate in Britain as mentioned in the video?

• 4%

• 3%

• 6%

• 5%

What change in language did the Bank of England make regarding future rate hikes?

• They included 'cautiously'.

• They added the word 'aggressively'.

• They removed the word 'forcefully'.

• They emphasized 'immediately'.

How has Catherine Mann's stance on interest rate hikes changed?

• She abstained from voting.

• She maintained the same stance as before.

• She voted for a smaller hike than before.

• She voted for a larger hike than before.

What are UK households increasingly opting for in terms of mortgages?

• Fixed rate mortgages

• Floating rate mortgages

• Interest-only mortgages

• Offset mortgages

When does the Bank of England expect the UK economy to recover to pre-pandemic levels?

• By 2026

• By 2025

• By 2027

• By 2024