With November’s Inflation Report indicating favourable prospects for growth and inflation, there is little reason for the MPC to change course on policy. And while unemployment may be falling more rapidly towards the 7% way station than the MPC expected, Committee members have been at pains to emphasise the “threshold, not a trigger” point frequently stressed by Governor Carney. Meanwhile, action to cool household lending with macro-prudential tools has further reduced the likelihood of an early rate hike. Accordingly, interest rates will be on hold for a long time yet.
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