BOE's Bailey Says He Has No Expectations for Stimulus in 2022

The transcript discusses the UK's economic upgrade and the Bank's asset purchase program, emphasizing that while the pace of achieving stock quantities has changed, the end date remains the same. It explores market reactions to these changes, the difference between open-ended and fixed QE programs, and the implications for future QE expectations. The discussion also covers forecasts based on market profiles and the importance of not over-interpreting market curves. Finally, it addresses the policy review process and considerations for future tightening, including rate hikes and asset stock reduction.

What was the reason for front-loading the UK's asset purchase program?

• To decrease interest rates

• To boost consumer spending

• Due to a COVID-19 upsurge

• To increase inflation

How do open-ended QE programs differ from fixed QE programs?

• They are less effective in controlling inflation

• They have a set end date

• They are more flexible in terms of duration

• They are only used in emergencies

What is the role of market profiles in the forecasting process?

• They determine the final policy decisions

• They are the only input considered

• They are used as a convenience for constructing forecasts

• They are ignored in the policy-making process

What is one of the main inputs to the policy-making process?

• Political pressure

• Market expectations

• Historical data

• Public opinion

What was the MPC's guidance on tightening back in early 2018?

• To reduce rates before increasing asset stocks

• To increase rates to 1.5% before reducing asset stocks

• To maintain constant rates indefinitely

• To decrease rates to 0.5% before increasing asset stocks