BOE's Carney Says U.K. Firms Focusing on Short-Term Brexit Plans

UK businesses have been focusing on short-term Brexit contingency plans, leading to increased stock building and a temporary boost in GDP. Despite these efforts, firms anticipate a decline in growth, investment, and employment in the event of a hard Brexit. The UK labour market has performed well, with unexpected growth in employment and wages, supporting consumer confidence and domestic demand. However, the housing market remains subdued. First quarter growth exceeded expectations, partly due to stock building, but a slowdown is expected in the second quarter. Financial markets remain sensitive to Brexit news, with global developments influencing interest rate projections.

What was one of the main strategies UK businesses used to prepare for potential Brexit disruptions?

• Reducing production levels

• Increasing stock building

• Decreasing trade with the EU

• Hiring more employees

How did UK companies generally respond to the uncertainty surrounding Brexit in terms of investment?

• They stopped all forms of investment.

• They focused more on hiring than on capital investment.

• They increased capital investment significantly.

• They invested heavily in foreign markets.

What was the general sentiment of UK households regarding their personal financial prospects despite Brexit?

• Pessimistic about personal finances

• Optimistic about personal finances

• Indifferent to economic changes

• Concerned about rising inflation

What is the expected impact on UK economic growth in the second quarter due to Brexit-related stock building?

• A significant increase in growth

• A corresponding drag on growth

• No impact on growth

• An unexpected surge in growth

How have global developments influenced the market curve for the Bank rate in the UK?

• They have caused the Bank rate to rise sharply.

• They have had no effect on the Bank rate.

• They have stabilized the Bank rate.

• They have led to a decrease in expected policy rates.