The financial markets have largely shrugged off the stream of gloomy news on the outlook for the UK economy over recent weeks. Not only has the equity market remained pretty resilient, but money market rates and bond yields have soared and the sterling exchange rate has stabilised after previous sharp falls. But these developments have left the markets looking complacent and we expect further falls in equity prices, bond yields and the pound in time as the downturn in the economy deepens and it becomes clear that official interest rates will eventually have to fall significantly further.
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