The resilience of the economy in Q3, combined with a stronger inflation outlook, will probably be enough to persuade a majority of MPC members to leave rates unchanged at next week’s meeting. What’s more, while we would not rule out the possibility of another rate cut entirely, we think that growth will continue to surprise the MPC on the upside over the coming quarters and that the cushion from the lower exchange rate and easing of the fiscal squeeze should mean that further monetary policy easing is no longer warranted.
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