What the BOE Is Looking At Ahead of Rate Decision

The transcript discusses the economic expectations post-Brexit, focusing on market sentiment and survey data indicating a downturn. It highlights the impact of PMI and CBI data on rate cut expectations and analyzes the UK yield curve and potential quantitative easing by the Bank of England. The discussion also covers potential actions by the Bank, including bond purchases and the Funding for Lending Scheme. Finally, it addresses interest rates, fiscal policy, and the roles of the Bank of England and the government in economic stimulation.

What was a key factor that convinced a member of the MPC to change his stance on policy stimulus?

• Strong manufacturing data

• Weak services PMI data

• High inflation rates

• Rising employment figures

What is the current spread between the 2-year and 10-year gilts in the UK?

• 100 basis points

• 80 basis points

• 57 basis points

• 120 basis points

What type of purchases is the Bank of England most likely to start with?

• Real estate

• Corporate bonds

• Foreign currency

• Government bonds

What is Governor Carney's stance on negative interest rates?

• He has already implemented them

• He has no opinion

• He is averse to them

• He supports them

What is the expected sequence of actions between the Bank of England and the UK government regarding economic stimulus?

• The government will act first, followed by the Bank of England

• Neither will take action

• Both will act simultaneously

• The Bank of England will act first, followed by the government