Markets get over-excited by labour market news

Market rate expectations rose further last week following some positive unemployment figures and the news that the Monetary Policy Committee was not unanimous in supporting forward guidance in the agreed form. However, we still think that markets are underestimating the MPC’s resolve to keep interest rates low.

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.