Vlieghe Sees BOE Stimulus If Brexit Uncertainty Endures

The video discusses the volatility in quarterly GDP growth, highlighting the impact of Brexit uncertainty on business investments and consumption growth. It examines the increase in economic slack and its implications for monetary policy. The video outlines three Brexit scenarios: a near-term deal, entrenched uncertainty, and a no-deal Brexit, each with different economic outcomes. The Monetary Policy Committee (MPC) will act to maintain inflation targets while supporting growth and jobs.

What is one of the main reasons for the decline in business investments in the UK?

• Increased consumer spending

• Brexit uncertainty

• Global economic boom

• High inflation rates

How does the current economic slack compare to the period from 2013 to 2017?

• It is fluctuating

• It is increasing

• It is decreasing

• It remains unchanged

What impact does increasing economic slack have on monetary policy?

• It results in reduced inflation

• It influences the need for monetary stimulus

• It has no impact

• It leads to higher interest rates

Which scenario might prevent the need for easier monetary policy?

• A no deal Brexit

• A near term Brexit deal

• Entrenched Brexit uncertainty

• Global economic downturn

What is the role of the MPC in the context of Brexit scenarios?

• To manage inflation and support growth

• To reduce GDP growth

• To eliminate economic slack

• To increase unemployment