Growth stabilises, inflation still not a threat

Today's data did not show the upsurge in inflation that some had thought might have triggered this week's interest rate hikes. Q3 GDP growth too was in line with initial expectations. Instead, the rate moves may have been driven, at least in part, by a desire to raise the cost of capital so that the share of national income going to workers increases. In time, this should support rebalancing.

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