What to Watch for in BOE Rate Decision

The video discusses the economic landscape with a focus on the Bank of England's potential rate hike amid high inflation and the Ukraine war. It highlights the Fed's recent actions and the challenges faced by policymakers. The discussion also covers quantitative tightening and the cautious approach of the Bank of England due to economic stress.

What is the main concern for the Bank of England when considering a rate hike?

• The potential for a stock market crash

• Increasing inflation due to the Ukraine war

• The effect on international trade

• The impact on the housing market

What is one argument against a large rate hike by the Bank of England?

• It could lead to a housing bubble

• It could cause a recession

• Inflation might decrease on its own by reducing demand

• It would strengthen the currency too much

What rate increase does Bloomberg Economics predict?

• 100 basis points

• 25 basis points

• 75 basis points

• 50 basis points

What is the Bank of England's stance on active gilt sales during economic stress?

• They will proceed with sales regardless

• They will decrease sales to avoid market disruption

• They will delay sales until stress subsides

• They will increase sales to stabilize the economy

At what rate level does the Bank of England plan to start active gilt sales?

• 1%

• 0.5%

• 1.5%

• 2%