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Interest rates – stick or twist?

Percentage numbers floating

A free webinar recording

Speaker - Roy Daintith, Senior Consultant for Macroeconomics, Leadership and Professional Development at Kaplan

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In this webinar Roy will assess the current state of the UK, USA and EU, taking into account the following factors and give his insight into what the future may hold:

  • GDP growth, unemployment and inflation
  • Fiscal stance, including deficit and borrowing levels
  • Factors driving aggregate demand
  • Monetary conditions
  • Linkages between markets and economies, global indebtedness

The economy seems back to normal – GDP growth is ticking along, unemployment is low with over 750 thousand vacancies on the job register, and inflation remains low and stable. The balance of payment seems to be the only issue. And over in the US, it's pretty much the same story; the economy is powering along with solid GDP growth, inflation is low and unemployment is very low at 4.9% (anyone remember the phrase ‘jobless recovery’?). It seems Obama will leave office later this year with a good track record on the economy capped by a budget deficit down from 12% of GDP to 2.5%.

The US has raised interest rates and so the process of normalisation of monetary policy seems to have started. The Zero Bound (ZIRP) remained in place and so we can expect the usual levels for interest rates. But Japan has added uncertainty into the mix with the introduction of negative interest rates. So the big questions remains... will the UK and USA stick or twist?

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