An interest rate cut is desperately needed to support the rapidly deteriorating economy. But inflationary pressures continue to tie the Monetary Policy Committee’s hands. The chances of an interest rate rise have receded significantly. But with a rate cut still some way off, the cost of keeping a lid on inflationary pressures now looks like a strong chance of a technical recession.
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