The global contagion from the sub-prime crisis in the US has created a dilemma for central banks. On the one hand, the turmoil in the financial markets argues for lower interest rates. But on the other, there are a host of medium-term pressures that suggest that the risks to inflation are still on the upside, and that rates may have to rise further – at least outside the US.
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