This range of practices reveals that there is little consensus about the method
used to set budget rates. Using consensus forecasted rates continues to be the
preferred approach, selected by 42% of respondents, which is up from 35% in
2009, but marginally lower from a 45% response rate in 2008. The Wells Fargo
recommended method for setting budget rates — using prevailing forward
rates — increased in 2011 to 21% from 17% last year, and from only 14% in 2008.
However, using prevailing forward rates still trails consensus forecasted rates
and prevailing spot rates as a method when setting a budget rate.