BOE Warns of Brexit Twists as U.K. Continues Growth

The transcript discusses concerns about inflation and GDP forecasts, highlighting the unchanged inflation outlook despite market expectations. Mark Carney maintains a neutral stance, providing no clear policy signals. Interest rates are not expected to rise until May 2018, with discussions on employment slack suggesting more room for economic maneuvering. Brexit's impact and consumer resilience are noted, with emphasis on consumer spending and real income. Market expectations and Sterling's role in inflation are also discussed, with Carney hinting at potential currency appreciation.

What was the market's reaction to the unchanged inflation forecast?

• The market was surprised and Sterling rallied.

• The market was surprised and Sterling fell.

• The market was indifferent and Sterling remained stable.

• The market expected it and Sterling rallied.

When is the next expected interest rate hike for the UK?

• May 2018

• May 2017

• November 2017

• November 2018

What does a lower estimate of full employment suggest?

• Inflation is likely to increase.

• Wages are expected to rise.

• There is less slack in the economy.

• There is more slack and wages won't pick up.

What was a surprising factor for the committee post-Brexit?

• The rapid increase in inflation.

• The immediate economic downturn.

• The resilience of consumers.

• The decline in consumer spending.

What role does Sterling play in inflation expectations?

• Sterling stabilizes inflation expectations.

• A weaker Sterling pushes inflation expectations higher.

• Sterling has no impact on inflation expectations.

• A stronger Sterling increases inflation expectations.