Carney Assures That BOE Is Prepared for all Brexit Scenarios

The transcript discusses the potential economic impacts of a no deal Brexit, as highlighted by Carney in a meeting with the UK Cabinet. It covers the expected drop in the pound, higher tariffs, and inflation. The Bank of England's approach to preparing for the worst-case scenario is emphasized, with a focus on stress tests and interest rate policies. The discussion also touches on the implications of currency weakness and the potential for lost economic activity, suggesting that aggressive interest rate policies may not be suitable for the UK economy.

What are the potential economic risks mentioned by Carney in the event of a no deal Brexit?

• Increase in employment

• Drop in the pound and higher tariffs

• Decrease in inflation

• Strengthening of the pound

What does Carney suggest might be inappropriate for the UK economy in a hard Brexit scenario?

• Reducing tariffs

• Aggressive interest rate policy

• Cutting taxes

• Increasing government spending

How did the Bank of England respond to the Brexit vote according to the transcript?

• By maintaining the same interest rates

• By increasing interest rates

• By introducing new tariffs

• By cutting interest rates

What is a potential consequence of a hard Brexit on the UK economy as discussed in the transcript?

• Strengthened currency

• Lost economic activity

• Higher employment rates

• Increased capital inflow

What policy is mentioned as typically used by emerging markets to address capital outflow?

• Increasing tariffs

• Hiking interest rates

• Decreasing government spending

• Reducing interest rates