Can the economy withstand higher interest rates?

The recovery should maintain its strong paceeven though interest rates look set to risefrom the record low level soon. The MonetaryPolicy Committee (MPC) is unlikely to beunder pressure from inflation to raise ratesquickly, while the impact of rate hikes onfirms and households looks set to be muchsmaller than in the past.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.