BOE More Likely to Pause Than Fed, Says Abdrn's Kochugovindan

The video discusses the potential for a 25 basis point rate change by the BOE, highlighting a cautious outlook and a higher probability of a pause due to structural challenges. It also addresses tight labor markets and excessive wage pressures in the US and UK, which contribute to ongoing inflation issues. The decision-making process for both the BOE and the Fed remains complex.

What is the likelihood of a pause in monetary policy changes according to the first section?

• Certain

• Moderate

• Very low

• High

What is the expected sequence of actions if a 25 basis point change occurs?

• Immediate reversal

• Pause and observe data

• Decrease by 25 basis points

• Increase by another 25 basis points

Which economic factor is highlighted as a concern in both the US and UK?

• Deflation

• Trade deficits

• High unemployment

• Excessive wage pressures

What ongoing issue is mentioned as a problem in both countries?

• Core services inflation

• Rising interest rates

• Decreasing GDP

• Increasing exports

What is the main challenge for the BOE and the Fed going forward?

• Balancing trade agreements

• Reducing public debt

• Managing core services inflation

• Increasing foreign investments