Nomura's Buckley Sees Weaker U.K. Consumer Spending

The video discusses the economic situation in the UK, focusing on inflation, wage growth, and the potential impact of Brexit. It highlights the challenges faced by the Bank of England in managing interest rates amidst weak wage growth and high inflation. The discussion also covers the potential outcomes of Brexit negotiations and their implications for the UK economy. Additionally, the video compares gilts and Treasury yields, noting the lack of response from the Bank of England to the Federal Reserve's interest rate hikes.

What is the expected peak inflation rate in the UK according to the Bank of England's forecast?

• 1%

• 2%

• 3%

• 4%

What is one potential strategy to avoid a 'Cliff edge' in Brexit negotiations?

• Increase tariffs

• Immediate exit from the EU

• No negotiations

• Temporary membership of the European Economic Area

How has the Bank of England typically responded to the Federal Reserve's interest rate changes?

• They have moved quickly, usually within 1 to 7 months

• They have never followed the Federal Reserve

• They always move before the Federal Reserve

• They wait for more than 2 years

What is the idiosyncratic shock affecting the UK economy?

• Oil price fluctuations

• Global recession

• US-China trade war

• Brexit

What is the current trading difference between gilts and Treasurys?

• 200

• 126

• 100

• 150