Emons Says BOE in a Catch 22

The video discusses the impact of Brexit on the UK economy, highlighting its dual effect of increasing inflation and slowing growth. The speaker explains the dilemma faced by policymakers in deciding whether to hike interest rates, as doing so could further slow the economy. The strategy involves managing expectations by suggesting potential future hikes while maintaining caution. The probability of rate hikes is analyzed using Bloomberg data, showing an increase in expectations. The current economic outlook remains challenging, with inflation high and growth slow.

According to the text, what is the probability of a hike in interest rates by the end of the year?

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What challenges does the speaker mention regarding maintaining economic expectations?

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