RateAPY

Prime Interest Rate Predicted to Remain Unchanged

Posted by: RateAPY Bank Rates News
March 31st, 2010

The Federal Reserve’s Federal Open Market Committee (FOMC) will meet again on April 28, 2010, to determine whether or not to raise interest rates. Traders are making predictions about the likelihood of an interest rate move by the FOMC.

Futures Trading an Indicator of Pime Interest Rate

As of today, as indicated by the traders of Fed Funds Futures, there is a 100 percent certainty that interest rates will remain unchanged again. This prediction method can change daily and is more accurate as the date of the actual meeting approaches.

If the Fed Funds target rate remains at the current 0.000%-0.250% level, it should mean the prime interest rate will remain at the current 3.250% mark. This is good news for anyone carrying mortgage debt indexed on the prime interest rate.