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Admitting that he was being "evasive", he said it was not the chancellor's job to forecast interest rate increases.
Financial markets are already beginning to forecast interest rate increases by the Fed this spring, reflecting a belief that the combination of the rate cuts this year, plus action by Congress on a stimulus package, could send the economy into overdrive.
Forecast interest rates?
Most bond pickers try to forecast interest rates or predict credit upgrades.
Forecasting Changes If you're trying to forecast interest rate changes on adjustable rate mortgages, look at the shape of the yield curve.
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"Interest rate hikes are right around the corner, with the majority of experts... forecasting interest rates to start rising from as early as February next year".
These observations are also of potential forecasting interest.
Forecasting interest yields and currency movements also plays a role in determining future costs, especially on the life side.
Some experts have even forecast higher interest rates and a fall in G.D.P.
Roger Bootle, managing director of Capital Economics, for example, recently forecast that interest rates would not exceed 1% during the next five years.
The most likely action, they said, is an extension of the Fed's forecast that interest rates will remain near zero at least until late 2014.
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