The big market moves over the past week – with stock markets and bond yields both falling sharply – present something of a dilemma for our own views. We have long expected an economic slowdown in 2019, as the policy mix becomes much more restrictive. Accordingly, to the extent that markets and the consensus are simply catching up to our long-held view that economic growth will slow, we feel vindicated. Nevertheless, on balance we’re still a little surprised to see such a growing panic in markets develop quite so soon given the relatively benign economic backdrop.
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