EFTA Document EFTA01459043

We disagree with the view that hiking is a policy mistake: the economy is strong enough to withstand higher rates Fed does not want to hike too early and risk having to reverse course as other major central banks have done %, policy rate 8 6 4 2 0 -ECB -Riksbank Norges Bank -RBA -2 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: EC8. SRB. NB. RBA. Have/ lthalylks, Deutsche Bank Research Rising real wages incentivise firms to invest, leading to higher productivity g