A Wait and See View of U.K.'s Autumn Statement

The transcript discusses the economic implications of Brexit, focusing on the Chancellor's forecast, market reactions, and the roles of the Bank of England and the Treasury. It highlights the expected decrease in growth, increase in inflation, and borrowing due to Brexit. The discussion also covers the challenges in economic forecasting and the differing approaches of the Bank of England and the Treasury in response to economic uncertainties.

What was the general expectation regarding economic growth and borrowing post-Brexit?

• Growth was expected to increase significantly.

• Borrowing was expected to decrease.

• Inflation was expected to decrease.

• Growth was expected to cut, and borrowing was expected to rise.

What is the role of the Office for Budget Responsibility in the economic forecast?

• To make decisions on behalf of the Chancellor.

• To predict the exact economic outcomes.

• To offer a single central forecast for the Chancellor's decisions.

• To provide multiple forecasts for the Chancellor.

How did the Bank of England respond to the economic situation post-Brexit?

• By tightening monetary policy.

• By increasing taxes.

• By reducing interest rates to zero.

• By loosening monetary policy.

What approach did the Treasury take in response to the economic forecasts?

• Implemented immediate fiscal policies.

• Increased government spending.

• Decided to wait and see.

• Reduced borrowing immediately.

What is a potential long-term implication of borrowing more now, according to the discussion?

• Reduction in inflation.

• Immediate economic recovery.

• More austerity and pain later.

• Increased economic growth.