Behind the Divergence in Gilt's and Sterling

The video discusses the UK economic landscape post-Brexit, focusing on the divergence between the 10-year yield and the pound. It highlights the impact of inflation on real incomes and growth, and the role of the Bank of England's policies. The discussion also covers investment strategies amidst economic uncertainty and the potential risks of inflation in the UK compared to other regions.

What was the initial economic response to the Brexit referendum according to the video?

• An increase in the value of the pound

• A decrease in GDP

• A rise in 10-year yields

• A significant stimulus package from the Bank of England

How does a weaker sterling typically affect inflation?

• It stabilizes inflation

• It increases inflation

• It has no effect on inflation

• It decreases inflation

What is the expected impact of rising inflation on real incomes?

• Real incomes will increase

• Real incomes will remain stable

• Real incomes will double

• Real incomes will decrease

What is the main concern if the Bank of England changes its policy approach?

• It will stabilize the economy

• It will negatively impact growth

• It will have no impact on the economy

• It will lead to higher growth

What is a potential risk for the UK economy in the coming years as discussed in the video?

• Deflation

• Stagflation

• Economic boom

• Hyperinflation