The best way to make interest rate forecasts is to look at the economy. If it is doing well, interest in capital also increases.
The “Purchasing Managers’ Indices” (PMI) act as an early indicator. This type of index is a survey that provides information about economic development in the coming months. It is made up of various sub-indicators such as new orders, production, employment, delivery times and inventories. If this index reaches a value above 50, this can be an indication of economic growth. The PMI in the USA is particularly relevant here, as the USA is known as the engine of global growth.
When it comes to interest rate forecasts, the key thing to remember is that balance is important. As long as the economy is neither running at full speed nor faltering, interest rates will remain low.