HSBC's current expectations for official rates are:
United Kingdom: Analysts think that rates will rise at the May 6th Bank of England Monetary Policy Committee meeting.
Market expectations are currently that 'Base' rate will increase to 4.75% at the end of 2004, to at least 5% at the end of 2005 and to at least 5.25% at the end of 2008.
It is worth remembering that a 1% increase in variable mortgage rates means that a first time buyer's monthly mortgage repayment would increase by 10%.
United States: The interest rate futures market currently expects short-term U.S. interest rates to be 1.75% at the end of 2004, 3.50% at the end of 2005 and 5.5% at the end of 2008.
Markets currently think there is a 50% probability that the U.S. central bank will increase rates at its June meeting and that it will increase rates by at least 0.25% by the end of August.
Eurozone: The markets currently believe that euro rates will be at least 2% at the end of 2004, 3% at the end of 2005 and about 4.5% at the end of 2008.
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HSBC's views on interest rates
- Sunday, May 02 - 2004 at 16:36
What is likely to happen to interest rates? The following information from HSBC is subject to change without notice.
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HSBCSunday, May 02 - 2004 at 16:36 UAE local time (GMT+4)
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