Skip to main content

Phase two of forward guidance won’t hasten rate hikes

The Monetary Policy Committee’s decision on Thursday 8th May will be the first to be taken under the second phase of forward guidance. But we don’t expect that to have much of a bearing on its deliberations. With inflation falling further below target in March and first quarter GDP growth disappointing the MPC’s expectations, another no change decision would appear to be a given. And we still believe that interest rates will not need to rise until well into 2015.

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


Get access