“There is nothing mechanical or automaticaboutthe policy, andthere are manylinks in the chain, ” points out JonathanLoynesofCapitalEconomics, a consultancy.
Given the UK's more favourable economic position, "any eventual slowdown here will be less severe than in the US", said Jonathan Loynes at Capital Economics.
"The fourth quarter's bigger-than-expected fall underlined the fact that, while sentiment towards the region has improved, the hard news on the economy remains distinctly weak, " said Jonathan Loynes, chief European economist at Capital Economics.