Inflation Rate and Short-term Interest Rate Forecasts

Price Inflation (RPIX)

Base Rate

End

End

End

End

2003

2004

2003

2004

%

%

%

%

ABN Amro

2.60

2.30

4.00

4.50

CSFB

2.50

2.50

4.00

5.00

Deutsche Bank

2.30

2.50

3.75

4.00

Goldman Sachs

2.60

2.40

4.50

5.00

HSBC Securities

2.60

2.00

4.00

4.00

JP Morgan

2.90

2.60

4.25

3.50

L & G Investment Management

2.50

2.50

4.25

4.75

Merrill Lynch

2.50

2.60

4.75

4.75

Morgan Stanley Dean Whitter

2.00

2.20

3.75

4.50

Schroder-SSB

3.30

2.90

5.00

-

UBS Warburg

2.20

2.70

4.50

4.50

Median

2.55

2.50

4.13

4.50