We think the Fed is likely to raise interest rates three more times by the middle of next year. By 2020, however, we suspect that Fed officials will reverse course and cut interest rates in response to a slowdown in the economy. Other major central banks will remain a long way behind in their tightening cycles. The Bank of England may raise interest rates a little faster than anticipated by financial markets next year, provided a “no deal” Brexit doesn’t put a spanner in the works. But the ECB will only begin to raise rates in late 2019, and policy tightening in Japan is not yet in sight.
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