BOE's Carney: U.K Prosperity Relies on EU Relationship

The video discusses the UK's economic adjustments post-Brexit, focusing on the new relationship with the EU and its impact on inflation through market perceptions, trade, and consumer behavior. The MPC's response included monetary policy adjustments to balance inflation and growth. Despite Brexit uncertainties, consumer spending and the housing market showed resilience, supported by strong job security and financial conditions.

How might market participants' perceptions influence the economy post-Brexit?

• By changing the interest rates

• By affecting asset prices and exchange rates

• By altering government policies

• By increasing unemployment rates

What did the MPC indicate about the effects of a vote to leave the EU?

• It would require immediate policy changes

• It would impact demand, supply, and exchange rates

• It would automatically lead to higher inflation

• It would have no effect on the economy

What was the MPC's approach to balancing inflation and growth post-Brexit?

• Increasing taxes

• Raising interest rates

• Reducing government spending

• Implementing a comprehensive package of easing measures

How did households react to Brexit-related uncertainties?

• By selling off assets

• By increasing their savings

• By showing strong consumer confidence

• By reducing their spending significantly

What factor contributed to the resilience of the housing market post-Brexit?

• Higher interest rates

• Increased government subsidies

• Decreased demand for housing

• Positive consumer sentiment and supportive financial conditions