How much do you think the prime rate will increase, within the next 2-4 years?

[galahad15]

Since it affects all variable rate credit card APRs, was j/c how much do you think the prime rate will increase, within the next 2-4 years?  For example: by an additional  4% - 6%?  More?

[Anonymous]

Rates tend to move slowly. I'd guess 1-2%

[Anonymous]

not an expert on that but im hoping it wont be much

[Themanwhocan]

Well, the US Prime rate has never exceeded 21.5%, and that was back when I was a teenager.

So, not very much would be my guess.

[CreditCuriosity]

Although CC people or people that borrow money in  general dont want to hear this, the feds need to raise the rate as it has been way to low for way to  long.  They have no business being in the stock market with their policies either.  It will raise very slowly as people are use to cheap money.

[dman23]

My buddy and I have concluded that as long as Janet Yellen is Chairperson of the Federal Reserve interest raise will stay where they are. 

[Anonymous]

Likely will see one or two increases in 2015 equaling 1/2%. In 2016 may see similar increases. Seems there is political pressure to increase rates.

[thom02099]

The prime rate is data driven, based on analysis at a specific moment in time.  An analysis will likely be done in the next quarter to determine if a rate increase is warranted, based on information at that time.  It's impossible to predict much more than 6 months out, as things can change drastically (see housing bubble/crash of 08-09).  One can certainly speculate, but unless one has a very firm grasp of what the future holds, it's nothing more than that.

[Anonymous]

Prime rate is certainly based on factual economic indicators and it is also influenced by politics. Finance/banks and related pressure for changes (that is in their better interests) that may closely align with their needs and all the facts in the world will not necessarily sway the outcome. Yellen has already stated that the Fed is looking at about an increase of 1/2% during the second half of 2015.

[dman23]

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@thom02099 wrote:

The prime rate is data driven, based on analysis at a specific moment in time.  An analysis will likely be done in the next quarter to determine if a rate increase is warranted, based on information at that time.  It's impossible to predict much more than 6 months out, as things can change drastically (see housing bubble/crash of 08-09).  One can certainly speculate, but unless one has a very firm grasp of what the future holds, it's nothing more than that.

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I agree. As Yellen has said repeatedly it's "data dependent".