Maisonneuve: European Central Banks Running Out of Breath

The video discusses the impact of a weaker pound on the UK economy, particularly in the context of Brexit. It highlights the challenges faced by European economies, such as Germany and Italy, and considers how the Bank of England might respond to these economic conditions. The discussion includes the potential benefits and risks of adjusting interest rates and the importance of managing currency competitiveness carefully to avoid uncertainty.

What are the risks associated with making rapid changes to interest rates in response to currency fluctuations?

Why is it important for the Bank of England to manage the currency's value carefully?