17 April 2008

Three More Rate Hikes Before The End Of The Year?

It is possible.

There is a 70% chance of another 50 basis points interest rate adjustment, taking prime to 15.5%, and an even chance of two additional hikes before year-end, according to senior economist from Credit Guarantee Insurance Corporation, Luke Doig.

"Most confidence surveys paint a bleak picture, while expectations don't indicate any imminent recovery," he says.

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