Although there is limited scope to reduce interest rates further, the hit from lower oil prices on the economy is taking a heavier toll than widely acknowledged. Without any offset from the non-energy economy, we see no reason why the Bank wouldn't take out more insurance by lowering rates from 0.75% to 0.25% before year end.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services