Serving the Quantitative Finance Community
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- marketJunk
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Interest rate projection methods
Experts, What are various methods and their respective pros and cons for forecasting central bank interest rates ?Thanks
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- Martinghoul
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Interest rate projection methods
I only know of one, called "economist waving hands in the air"
Interest rate projection methods
Because it is more politically suggested than analytically predicted for unstable economy. If economy stable neutral or slightly growing there is no need to change IR.
Interest rate projection methods
Reuters and Bloomberg provide tools to "calculate probabilities and expected future levels of a number of Central Bank target interest rates". I have never used them and don't know how they work in detail. You may have a look and decide if it is of any interest to you.M.