Carney Says BOE Will Act as Needed as Trade Tensions, Brexit Unfold

The video discusses the UK's economic growth, highlighting its reliance on household spending amidst global trade tensions. It analyzes the marginal direct effects of trade measures on the UK and potential impacts of Brexit. The video emphasizes the need for policy adjustments in response to uncertainties, aiming to maintain inflation targets and support jobs during this transition.

What is the current economic growth in the UK primarily dependent on?

• Export growth

• Household spending

• Investment in technology

• Government spending

What is the estimated impact on UK GDP if all trade measures are implemented?

• 0.1%

• 0.4%

• 1.0%

• 2.0%

How might Brexit-style confidence effects impact the UK economy?

• Increase in GDP by 1%

• Decrease in GDP by over 1%

• Increase in GDP by 0.4%

• No impact on GDP

What are the two major uncertainties mentioned that could affect the UK economy?

• Global trade war and a no deal Brexit

• Currency fluctuations and interest rate changes

• Rising inflation and unemployment

• Technological advancements and climate change

What is the primary goal of policy adjustments in response to economic uncertainties?

• Achieve a trade surplus

• Increase government revenue

• Reduce unemployment to zero

• Bring inflation back to its 2% target