Can anything about future interest rates be found from swap rates?

oldwiring

Here is a table that gives swap rates over a number of years. From it what assumptions can be made on the movement of interest rates, say,over 3, 5 and years, if any?

stator

Of course it can tell you what people are expecting to happen to interest rates. But it can't tell you what will happen

oldwiring

I realise that! Perhaps I worded the OP badly, but from those figures what is the market forecasting will happen; E&O.E of course?

Thrugelmir

Very little. Swap rates for £5 million tranches won't influence market rates for mortgages.

stator

At some point in the not too near and not too distance future interest rates are going to start going up. No-one knows more than that

regprentice

stator wrote: »

At some point in the not too near and not too distance future interest rates are going to start going up. No-one knows more than that

an initial interest rate rise is supposedly factored into current fx swap rates....but the banks will certainly take the opportunity to jack up rates if they can.

recently,with rates so low, fees and charges have become an important part of the charging mechanism especialy for products with a very low rate (where the charge itself represents a significant proportion of the money the bank makes during the fix period.)