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Global interest rates in 2008

Posted by Yogesh on Friday, 10 October, 2008

LONDON, Oct 9 (Reuters) – Central banks around the world cut interest rates in unison on Oct. 8 to try to limit economic damage from the worst financial crisis in almost 80 years.
As a result the average rate set by central banks of the Group of Seven nations fell to 2.55 percent from 2.95 percent while the average rate set by 11 leading central banks — the five that decide monetary policy for the G7 nations plus six other major banks — fell to 3.98 percent from 4.23 percent.
The following table of average rates is aimed at reflecting the movement of official policy rates during the economic cycle rather than actual borrowing costs.
2008

MONTH: END06..END07..01…02…03…04…05 …06…07…08…09…10…11…12
G7 AVG: 3.65 3.70 3.40 3.35 3.10 2.90 – – 2.95 – – 2.55 – –
11 AVG: 4.00 4.52 4.39 4.41 4.32 4.25 4.26 4.28 4.33 – 4.28 3.98 – –
FED 5.25 4.25 3.0* – 2.25 2.0 – – – – – 1.50 – –
BOJ 1) 0.25 0.50 – – – – – – – – – – – –
ECB 3.50 4.00 – – – – – – 4.25 – – 3.75 – –
BOE 5.00 5.50 – 5.25 – 5.0 – – – – – 4.50 – –
BOC 4.25 4.25 4.0 – 3.5 3.0 – – – – – 2.50 – –
SNB 2) 2.00 2.75 – – – – – – – – – 2.5 – –
RBA 6.25 6.75 – 7.0 7.25 – – – – – 7.0 6.0 – –
RBNZ 7.25 8.25 – – – – – – 8.0 – 7.5 – – –
RIKSBK 3.00 4.00 – 4.25 – – – – 4.5 – 4.75 4.25 – –
NORWAY 3.50 5.25 – – – 5.5 – 5.75 – – – – – –
DENMARK 3.75 4.25 – – – – 4.35 – 4.6 – – 5.0 – –
NO. OF RATE CHANGES: 2007: 34 3 3 3 4 1 1 4 – 3 8 – –
MONTH: END06..END07..01…02…03…04…05… 06…07…08…09…10…11…12
EASTERN EUROPE:
POLAND 4.00 5.00 5.25 5.5 5.75 – – 6.0 – – – – – –
HUNG 8.00 7.50 – – 8.0 8.25 8.5 – – – – – – –
CZECH 2.50 3.50 – 3.75 – – – – – 3.5 – – – –
SLOVAK 4.75 4.25 – – – – – – – – – – – –
RUSSIA 11.0 10.0 – 10.25 – 10.5 – 10.75 11.0 – – – – –
UKRAINE 8.5 8.0 10.0 – – 12.0 – – – – – – – –
ROMANIA 8.75 7.5 8.0 9.0 9.5 – 9.75 10.0 10.25 – – – – –
LATIN AMERICA:
BRAZIL 18.00 11.25 – – – 11.75 – 12.25 13.0 – 13.75 – – –
MEX 3) 7.0 7.5 – – – – – 7.75 8.0 8.25 – – – –
CHILE 5.25 6.0 6.25 – – – – 6.75 7.25 7.75 8.25 – – –
ASIA
KOREA 4.50 5.00 – – – – – – – 5.25 – 5.0 – –
THAI 4) 5.00 3.25 – – – – – – 3.5 3.75 – – – –
PHIL 7.50 5.25 5.0 – – – – 5.25 5.75 6.0 – – – –
TAIWAN 2.75 3.375 – – 3.5 – – 3.625 – – 3.5 3.25 – –
INDS 9.75 8.00 – – – – 8.25 8.5 8.75 9.0 9.25 9.5 – –
INDIA 7.25 7.75 – – – – – 8.5+ 9.0 – – – – –
CHINA 6.12 7.47 – – – – – – – – 7.2 6.93 – –
MIDDLE EAST/AFRICA:
SARB 9.0 11.0 – – – 11.5 – 12.0 – – – – – –
ISRAEL 4.5 4.25 – 3.75 3.25 – 3.5 3.75 4.0 4.25 – 3.75 – –
TURKEY 17.5 15.75 15.5 15.25 – – 15.75 16.25 16.75 – – – – –

MONTH:

DEC06..DEC07..01…02…03…04…05… 06…07…08…09…10…11…12
* Federal Reserve cut rates twice in January 2008 by 75 and 50 basis points respectively
+ Reserve Bank of India raised the repo rate twice in June 2008, to 8.0 percent on June 11 and 8.5 percent on June 24.
NOTES:
If rates change more than once a month, the last rate for that month is listed.
1. On March 9, 2006 the BOJ said it would no longer set a target for the amount of surplus funds in the money market, ending its “quantitative easing” policy, and adopted a more conventional tactic of guiding the unsecured overnight call rate. On July 14, 2006 it raised interest rates for the first
time in six years.
2. The Swiss National Bank targets a range for the three-month Swiss franc LIBOR rate. It currently targets roughly the midpoint of that range.
3. Table shows the Bank of Mexico’s overnight lending rate. This replaces monthly averages of yields on 28-day Cetes treasury bills at weekly open market operations, as shown in past tables.
4. On Jan. 17, 2007 the Bank of Thailand set a new policy rate based on the 1-day repurchase rate BOT15, instead of the 14-day rate. The rate was set at 4.75 percent, compared with the market close that day of 4.9375 percent.
Comparison in the table for the end of 2006 shows the 14-day rate.
——————————————————————————
INTEREST RATES. (All the interest rates are policy rates identified by each central bank)

GROUP OF SEVEN CENTRAL BANKS:
U.S FEDERAL RESERVE = federal funds rate
BANK OF JAPAN = overnight call rate
EUROPEAN CENTRAL BANK = refi rate
BANK OF ENGLAND = bank rate
BANK OF CANADA = overnight funding rate

MAJOR CENTRAL BANKS:
SWISS NATIONAL BANK = 3-month Swiss Libor
RESERVE BANK OF AUSTRALIA = cash rate
RESERVE BANK OF NEW ZEALAND = cash rate
SWEDISH RIKSBANK = repo rate
NORGES BANK = deposit rate
DENMARKS NATIONALBANK = 1-week cd rate

CENTRAL AND EASTERN EUROPE:
NATIONAL BANK OF POLAND (NBP): 28-day intervention rate
NATIONAL BANK OF HUNGARY: (NBH) 2-week deposit rate
CZECH NATIONAL BANK (CNB): 2-week repo rate
NATIONAL BANK OF SLOVAKIA (NBS): 2-week limit repo rate
CENTRAL BANK OF RUSSIAN FEDERATION (CBR): refinancing rate
NATIONAL BANK OF UKRAINE (NBU): discount rate
NATIONAL BANK OF ROMANIA (NBR): monetary policy rate

LATIN AMERICA:
CENTRAL BANK OF BRASIL (BCB): Selic rate
CENTRAL BANK OF CHILE (BCC): Discount rate
BANK OF MEXICO: Overnight lending rate

ASIA:
BANK OF KOREA: Overnight call rate
BANK OF THAILAND: 1-day repurchase (repo) rate. End-05 and end-06 comparisons are for the 14-day repo rate (see note 4 above)
CENTRAL BANK OF PHILIPPINES: Overnight borrowing rate
CENTRAL BANK OF CHINA (TAIWAN): Discount rate
BANK INDONESIA: Bank Indonesia (BI) reference rate
RESERVE BANK OF INDIA: Repo rate
PEOPLE’S BANK OF CHINA: One-year yuan lending rate

MIDDLE EAST/AFRICA:
SOUTH AFRICAN RESERVE BANK: Repurchase rate
BANK OF ISRAEL: Short-term lending rate
CENTRAL BANK OF TURKEY: Overnight borrowing
Source Reuters

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One Response to “Global interest rates in 2008”

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