The Monetary Policy Committee (MPC) does not seem too concerned by risks from China, while the recent pick-up in wage growth will worry the hawks on the Committee. Indeed, markets have probably gone too far in again pushing back expectations of a hike to the end of next year. Nonetheless, with inflation about to turn negative again and the economic recovery cooling a bit, we doubt that rates will rise until well into 2016.
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 gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services