Jupiter's Davies: The UK implications of a 'lower for longer' oil price

Despite a slowdown in growth to 0.5% in the third quarter, the UK economy continues to perform well.

Unemployment is now back at levels not seen since before the global financial crisis, while growth in wages (more than 3% in the private sector in the year to August, according to the ONS) and inflation of about zero has translated into strong retail sales. One of the key points remains the timing of interest rate rises, which the market has not had to worry about for a very long time. But we are now reaching a point where the Federal Reserve cannot postpone a hike much longer. The UK domestic economy is at least as strong as the US, so the Bank of England should not be too far behind...