The upward shift in investors’ interest rate expectations over the past month has been remarkable. While it is impossible to predict the timing of the first rate hike with any certainty, we have more confidence in our forecast that interest rates won’t rise as far as investors expect by the end of next year. Meanwhile, all the signs are that the Chancellor will announce some fairly stringent fiscal rules in next Wednesday’s Budget and Spending Review. That may prevent any major net giveaways being announced.
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