As oil prices have fallen over the past few months, investors’ expectations for interest rates in Norway have fallen roughly into line with our own. Rate expectations in Switzerland have edged down too, reflecting the weakness of the latest economic data. But in both countries, the risks still lie to the downside. The euro-zone economy looks set to grow at a more moderate pace in 2019, and we expect growth in the US to slow sharply. What’s more, while we assume that the UK will leave the EU with a deal, there is a significant chance that Brexit will be much more chaotic. All of this could yet stop the Norges Bank from raising interest rates at all next year, and prompt the SNB to leave interest rates unchanged until 2021.
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