BOE Credibility Loss Stems From Carney Period: Sentance

The transcript discusses the Bank's credibility issues over time, highlighting three major mistakes: not raising interest rates significantly in the 2010s, excessive monetary stimulus during the pandemic, and a delayed response to inflation in 2021. The Bank's slow and timid approach to adjusting interest rates is critiqued, with economists warning of sustained inflation as early as mid-2021.

What was the highest interest rate achieved by the Bank of England in the 2010s?

• 0.75%

• 1.25%

• 0.50%

• 1.00%

What was the primary tool used by the Bank of England for monetary stimulus during the pandemic?

• Tax reductions

• Increased government spending

• Quantitative easing

• Interest rate cuts

Which year did economists, including the speaker, start warning about significant inflation?

• 2021

• 2020

• 2022

• 2019

How long did it take the Bank of England to respond to inflation warnings in 2021?

• 3-4 months

• 6-9 months

• 12-15 months

• 18-21 months

What was the Bank of England's approach to raising interest rates initially in 2021?

• Erratic

• Aggressive

• Timid

• Balanced