As Nobel Prize-winning physicist Nils Bohr put it, “Prediction is very difficult, especially if it is about the future.” Humorous but true.
Nevertheless the question of where interest rates are likely to move in the future affects us all, and businesses and investors in particular would love to have a handle on what to expect.
In pursuit of answers we discuss the recent interest rate increase and what we might be able to glean from it by analysing the arguments put forward both by those economists who supported the increase, and by those who opposed it.
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