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Interest rate projection methods

Posted: September 24th, 2010, 1:26 am
by marketJunk
Experts, What are various methods and their respective pros and cons for forecasting central bank interest rates ?Thanks

Interest rate projection methods

Posted: September 24th, 2010, 6:05 am
by Martinghoul
I only know of one, called "economist waving hands in the air"

Interest rate projection methods

Posted: September 24th, 2010, 2:46 pm
by list
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

Posted: September 24th, 2010, 3:23 pm
by marpa
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.