Short-term interest rates less reliable than LIMEAN rates for predictions.
Market interest rates can show what people expect from the economy. This study looked at short-term interest rates to see if they can predict future rates accurately. They compared different types of rates and found that LIMEAN rates are better at predicting short-term rates than the Bank yield curve. This means that looking at longer-term rates is more reliable for predicting future rates than looking at short-term rates. Interest rate futures are also used to predict rates, but they don't give the same information as the yield curve.