BOE's Carney on Impact of Brexit on Economy, Policy

The MPC's forecast is based on a smooth transition assumption, reflecting UK business and household behavior. The economic outlook is influenced by responses to EU withdrawal developments. Monetary policy focuses on reactions affecting supply-demand balance and exchange rates. British households show resilience, with consumer confidence stable but below pre-referendum levels. Household spending aligns with real incomes, though borrowing and the housing market are subdued. Financial markets, especially sterling, have reacted sharply. Business investment has increased but remains cautious, with sentiment softening due to Brexit uncertainties.

What is the basis of the MPC's forecast regarding the economic transition?

• A prediction of a chaotic transition

• An assumption of a smooth transition

• An assumption of a chaotic transition

• A prediction of a smooth transition

How have British households generally reacted to Brexit news?

• They have been resilient but not indifferent

• They have been overly optimistic

• They have been pessimistic

• They have been indifferent

What has been the trend in consumer confidence in recent months?

• It has significantly decreased

• It has significantly increased

• It has been slightly below pre-referendum levels

• It has remained unchanged

What has been the impact on sterling in the financial markets?

• Sterling has been unaffected

• Sterling has remained stable

• Sterling has depreciated

• Sterling has appreciated

What is the current state of business sentiment according to surveys?

• Business sentiment is improving

• Business sentiment is stable

• Business sentiment is softening

• Business sentiment is unaffected