BOE Should Be Hiking Rates to 5.75%, Roubini Says

The transcript discusses the economic challenges faced by the UK, focusing on the Bank of England's current policy stance. Despite high inflation rates compared to the US, the Bank is hesitant to raise interest rates further, which could lead to stagflation. The discussion highlights the need for decisive action to prevent inflation expectations from becoming unanchored.

What does the term 'dovish signal' refer to in the context of the Bank of England's current stance?

What potential economic scenario is mentioned in the text that could arise if certain actions are not taken?