Recent Monetary Policy Committee (MPC) communications have just about made a rate cut on Thursday a done deal. The recent equity market turmoil has raised the question of whether the MPC should follow the Fed’s lead and take a more aggressive approach to cutting rates. However, the Committee’s inflation concerns suggest that it will proceed at a fairly gradual pace. We still expect rates eventually to have to fall to around 4%, but they may take their time getting there.
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