Skip to main content

Market turmoil is unlikely to dent the real economy

The financial market turmoil of the last month has demoted the economic news to the backseat. But it now looks like the markets are slowly returning to “normal”. Equity prices have risen from their troughs while overnight interest rates have fallen back to levels more consistent with official interest rates. The impact of the market turmoil on the real economy will not be clear for some time. But, barring any renewed deterioration in the markets, we think that it will be small. And the latest news on activity and prices suggests that the case for one more rate hike remains.

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


Get access