Will falling oil prices knock the economy off course?

The further drop in oil prices this week, to below $43pb, means that the recovery in mining investment seen in the first half of the year may be at least partly reversed in the second. That said, we still expect oil prices to rebound, and even if they fall further in the short term, the broader economic implications are likely to be limited compared to the much larger declines in oil prices seen in 2014-15.