BOE Hikes Key Rate by 25 Basis Points to 4.25%

The video discusses the recent rate hike to 4.25%, the highest since 2008, and its implications for inflation and financial stability. It highlights the vote split among policymakers, with some expressing concerns about the impact of previous hikes. The Bank of England expects inflation to fall sharply, which aligns with Prime Minister Rishi Sunak's priority to cut inflation. Despite some uncertainty, the Bank and UK Treasury express confidence in the financial system, with John Cunliffe's stance indicating stability.

What was the key rate increased to, marking the highest level since 2008?

• 3.75%

• 4.00%

• 4.25%

• 5.00%

Which member was expected to join the Doves but did not?

• Swati Dingra

• Sylvana Tenreyro

• John Cunliffe

• Andrew Bailey

What concern did Swati Dingra express regarding inflation?

• Inflation is irrelevant

• Inflation is overestimated

• Inflation is underestimated

• Inflation is stable

What is the Bank of England's outlook on inflation for the rest of the year?

• Inflation will be unpredictable

• Inflation will fall sharply

• Inflation will remain stable

• Inflation will rise sharply

What has the UK Treasury emphasized about the financial system?

• It is irrelevant

• It is confident

• It is under threat

• It is unstable