U.K. Economy Faces New Hurdles After Brexit Deal

The transcript discusses the economic implications of the Brexit deal, highlighting that while a deal is better than no deal, staying in the EU would have been more beneficial for UK growth. It covers the expected trade frictions and customs challenges, including potential food shortages. The impact on the currency and foreign investment is also examined, noting that the pound has not fully recovered since the Brexit vote. The Bank of England's potential response, including the possibility of negative interest rates, is discussed in light of the current economic situation and COVID-19 restrictions.

What was the predicted impact on UK output in 2021 if there was no Brexit deal?

• A 5% decrease

• A 1.5% decrease

• A 5% increase

• A 1.5% increase

How many extra customs declarations are expected daily due to Brexit?

• 100,000

• 1,000,000

• 600,000

• 200,000

What is the expected drop in foreign investment into the UK after Brexit?

• 50%

• 37%

• 20%

• 10%

What is the current benchmark interest rate set by the Bank of England?

• 0.5%

• 1.5%

• 1.0%

• 0.1%

Under what condition might the Bank of England consider negative interest rates?

• If inflation rises significantly

• If Tier 4 lockdowns last until Easter or beyond

• If unemployment falls sharply

• If the economy grows rapidly