BOE Raises Interest Rate to 0.75% in 9-0 Vote

The transcript discusses Mark Carney's perspective on the Bank of England's rate hike, which appears more aggressive than expected. It highlights the hawkish tone of the unanimous vote and the implications for the neutral rate, projected to be 3% in the long term. The UK economy's slowdown, especially post-Brexit, is contrasted with other G7 economies. The discussion also covers the gradual increase in the neutral rate globally and the market's expectation of a slow pace of rate hikes, with one per year being consistent with current trends.

What was the unexpected aspect of the Bank of England's recent rate decision?

• The rate was set to decrease.

• The decision was not unanimous.

• The rate was lower than expected.

• The tone was more hawkish than anticipated.

How is the neutral rate defined in the context of the UK economy?

• A rate that is set arbitrarily by the government.

• A rate that is only applicable during recessions.

• A rate that balances full capacity and inflation.

• A rate that is too high for economic growth.

What economic challenge is the UK facing post-Brexit?

• A rapid increase in exports.

• A surge in inflation rates.

• A slowdown in GDP growth.

• An increase in spare capacity.

What is the projected long-term neutral rate according to the Bank of England?

• 4%

• 2.5%

• 1.1%

• 3%

How does the expected pace of rate hikes in the UK compare to the US?

• The UK is expected to have a faster pace.

• The UK is expected to have a slower pace.

• Both are expected to have the same pace.

• The US is expected to have no rate hikes.