BOE on Hold: Why Were Investors Wrong-Footed?

The bank surprised markets by maintaining interest rates at 1%, despite expectations of a hike. The governor's hawkish hints had fueled these expectations, but he clarified that action was contingent on inflation control. The decision led to comparisons with his predecessor, Mark Carney, known for unreliable guidance. The rationale for holding rates included supply disruptions and awaiting clearer labor market data, aligning with Bloomberg Economics' predictions.

What was the market's reaction to the bank's decision to keep interest rates on hold?

• The market expected the decision.

• The market was surprised.

• The market was disappointed.

• The market was indifferent.

What did the governor clarify about the bank's potential actions in November?

• He suggested a rate cut.

• He promised a rate hike.

• He stated action was necessary if inflation expectations rose.

• He guaranteed no action would be taken.

What nickname was given to the governor's predecessor, Mark Carney?

• The Reliable Banker

• The Unpredictable Leader

• The Unreliable Boyfriend

• The Cautious Governor

Why did the MPC decide to keep interest rates on hold?

• To stimulate economic growth.

• To encourage consumer spending.

• Due to supply disruptions and unclear labor market data.

• To align with global interest rates.

What was Bloomberg Economics' stance on the likelihood of a rate hike?

• It was unlikely.

• It was a certainty.

• It was never a done deal.

• It was highly probable.