Pimco's Amey: Reasons Why BOE Shouldn't Hike Today

The video discusses the economic implications of interest rate hikes, particularly in the context of the UK's current economic climate. It highlights the pressures on consumers due to negative real income growth and low savings rates, suggesting that hiking rates could be premature without clear inflationary pressures. The discussion also touches on the potential impact of Brexit negotiations on economic policy. Concerns about stagflation in the UK are addressed, with the conclusion that current inflation is largely imported due to sterling depreciation, rather than a domestic issue.

Why is there a suggestion to delay hiking interest rates according to the first section?

• Because the stock market is booming.

• Due to negative real income growth and low savings rate.

• Due to high consumer confidence.

• Because inflation is rising rapidly.

What is the main concern about hiking interest rates before Brexit negotiations?

• It could lead to a stock market crash.

• It might strengthen the pound too much.

• It would be considered an aggressive move.

• It could decrease foreign investments.

What does Alan Greenspan's comment relate to in the second section?

• Deflation in the United States.

• Stagflation in the United Kingdom.

• Hyperinflation in Europe.

• Economic growth in Asia.

How has the UK 'bought' some inflation according to the final section?

• By reducing interest rates.

• By increasing exports.

• Through government subsidies.

• Via sterling depreciation.

What is the conclusion about stagflation in the UK?

• The UK is currently experiencing stagflation.

• Stagflation is only a concern in the US.

• There is no stagflation issue at the moment.

• Stagflation is expected to worsen.