Why Over-Inflation Is the Current Hot Topic

The transcript discusses the impact of Brexit on UK inflation and market trends, highlighting the Bank of England's anticipation of inflation overshooting due to sterling's decline. It also examines the interplay between domestic and global factors, including the influence of the Fed. The European Central Bank's (ECB) challenges in meeting inflation targets are explored, along with potential policy directions, such as extending quantitative easing before tapering. The discussion underscores the interconnectedness of global markets and the complexities of economic forecasting.

Discuss the relationship between global bond markets and domestic factors in the UK.

What challenges does the ECB face in reaching its inflation target?