PWC's Sentance Agrees With BOE Minority on Interest Rates

PWC's Sentance Agrees With BOE Minority on Interest Rates

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Business

University

Hard

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Andrew, a senior economic advisor, discusses his stance on interest rates, expressing that he would have voted for a rise, not because it's the best time, but due to missed opportunities from 2014 to 2016. He argues that gradual increases would have positioned the UK economy better, similar to the US. He criticizes the Bank of England for not normalizing rates post-financial crisis and highlights the risks of delayed rate hikes, emphasizing the need for a gradual approach to avoid sharp future increases.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

In what way does the advisor believe that gradually raising interest rates could benefit the economy?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What does the advisor suggest about the risks of delaying interest rate increases?

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