Rowe Price Forecasts 12.5% Prime: T. Rowe Price Predicts Prime Will Hit 12.5%
BALTIMORE, Dec. 12ÛÓA 12.5 percent prime interest rate, a 7.3 percent increase in inflation and "a mild recessionÛ were forecast today by economists for T. Rowe Price Associates, the big Baltimore investment firm.</br></br>In their annual briefing on the economy, Price executives also predicted a 2 percent increase in the gross national product in 1979 and a 4r to 6 percent growth in corporate profits.</br></br>But taking a longer view, Rowe Price Chairman E. Kirkbride Miller said the outlook is for a ÛÏbetter investment environment In 1979Û largely because of the depressed level of stock prices.</br></br>Despite the bargains, however, economists and investment specialists for the $6 billion firm said they see no</br></br>T.	Rowe Price manages about $4 billion in pensioh, profit sharing and endowment funds and runs 'mutual funds.with, assets of about $2 billion.