BOE's Vlieghe Urges 'Caution' on Rates Strategy

BOE's Vlieghe Urges 'Caution' on Rates Strategy

Assessment

Interactive Video

Business

University

Hard

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The transcript discusses the implications of real income growth on monetary policy, highlighting the limited room for easing compared to tightening. It emphasizes caution in rate hikes due to potential consumer slowdowns driven by subdued wage growth and rising inflation. The analysis also covers the role of consumer credit growth in sustaining household spending and the implications for monetary policy. Finally, it addresses the economic slack and the justification for tolerating above-target inflation.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

In what way does consumer credit growth relate to household spending resilience?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What does the author suggest about the justification for tolerating above-target inflation?

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