Economics students take the Interest Rate Challenge

A team of d'Overbroeck's economists recently took part in the Target 2.0 Interest Rate Challenge run by the Bank of England and The Times newspaper.

Competing teams were set the task of acting like a Junior Monetary Policy Committee: they had to evaluate current market trends and forecasts, and use their analysis to determine an appropriate interest rate in an attempt to hit a 2.0% inflation target.

After discussing the roles of food and energy prices, financial markets and borrowing conditions, consumption and retail sales, and growth trends, the team decided to keep interest rates on hold.

Although the team didn't win the challenge, the judges were impressed by their attention to credit conditions, and commended the very clear structure of their final presentation.

The team consisted of Aphinya Siranart, Dasha Doborogorskaya, Meichun Li and Isaree Tantasith.

– Report by Jagjeet Lally, Economics teacher