The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Base rates and the business outlook: the AFP survey

Business conditions are set to improve over the next 12 months although the cost of borrowing and issuing debt will also rise, according to a survey carried out at the Association of Financial Professionals (AFP) annual conference in San Diego, US. Over 50% of finance professionals believe the re-election of George W. Bush will have a positive impact on business conditions in the US, 17% foresee a detrimental impact while 29% predict little change.

The finance professionals are far less equivocal about base rates, however, with three quarters of respondents saying that Alan Greenspan at the Federal Reserve will increase interest rates during 2005. Just under two-thirds predict an increase of between 25 and 75 basis points, while 13% are forecasting a 100 basis point rise.

?With responsibilities that include managing trillions of dollars through the global financial markets each day, and making decisions that are critical to corporate performance, AFP members have a unique view of the US economy,? comments Jim Kaitz, president and the CEO of the AFP.

The survey also notes that 42% see terrorism as the greatest threat to economic prosperity, followed closely by federal government deficit spending (41%), rising interest rates (37%) and the outsourcing of jobs to foreign countries (32%).

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree