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Article: Fund managers tip interest rates to hit 5 per cent by end of year
- Article from:
- The Scotsman
- Article date:
- May 3, 2004
- Author:
CopyrightCopyright 2004 The Scotsman. Provided by ProQuest LLC. (Hide copyright information)
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ALMOST 50 per cent the country's top fund managers expect interest
rates to hit 5 per cent by the end of the year, and just over a tenth
expect rates to end 2004 higher.
The latest Citywire AAA Fund Manager Survey shows 41 per cent of
respondents expect the base rate to reach 4-4.5 per cent by the end
of December, with 47 per cent predicting 4.5-5 per cent. However, a
small minority, 12 per cent, still anticipate a base rate above 5 per
cent.
The Bank of England's monetary policy committee meets this week
and City betting is on a quarter point rise in rates to 4.25 per
cent, its third increase in six months.
Tomorrow, the US's Federal Reserve is also expected to switch to a
neutral stance ...