Country Ranking By Central Bank Interest Rates

Central banks conduct their monetary policy by controlling some overnight or short term interest rates. Central banks use these rates to lend money to commercial banks influencing mortgage rates and other types of loans. Central bank interest rates are one of the most effective tools to promote growth and keep inflation under certain limits. For instance, the Governing Council of the European Central Bank aims at keeping annual inflation under 2% while the Board of Governors of the U.S. Federal Reserve has a dual mandate of promoting sustainable growth and maintaining price stability. Stocks and bond markets are also influenced by these benchmark rates because high interest rates reduce the present value of future cash flows, thereby reducing the attractiveness of investment opportunities.

Interest Rate News

New Zealand Raises Benchmark Rate
Published: 7/28/2010 6:34:14 PM By: TradingEconomics.com, RBNZ

New Zealand’s central bank raised its benchmark interest rate for a second month to control inflation, and said the pace of future increases is likely to be slower than previously indicated.

Australia Inflation Cools
Published: 7/28/2010 11:40:49 AM By: TradingEconomics.com, Bloomberg

Australian consumer prices rose by much less than expected last quarter while core inflation slowed to its lowest in over three years, all but ruling out the need for an interest rate rise next week and possibly for the rest of the year.

Canada Raises Key Rate to 0.75%
Published: 7/20/2010 11:04:44 AM By: TradingEconomics.com, Bank of Canada

The Bank of Canada raised its benchmark lending rate for a second month, and said that slower economic growth through next year means any future moves will be “weighed carefully.”

Bank Of Japan Predicts Growth to Slow in 2011, Keeps 0.1% Rate
Published: 7/15/2010 10:09:56 AM By: TradingEconomics.com, Bank of Japan

The Bank of Japan kept interest rates unchanged and predicted growth in the world’s second- largest economy will slow next year as fiscal stimulus evaporates worldwide and overseas demand loses steam.

ECB Keeps Rate at 1%
Published: 7/8/2010 11:19:13 AM By: TradingEconomics.com, ECB

The European Central Bank left interest rates at a record low as rising market borrowing costs and the sovereign debt crisis threaten to derail the region’s economic recovery.

Bank of England holds Course on Rates and QE
Published: 7/8/2010 11:12:30 AM By: TradingEconomics.com, BoE

The Bank of England kept its bond- stimulus plan in place and left its benchmark interest rate at a record low to help prevent the economic recovery from stalling during the biggest budget squeeze since World War II.

Australia Keeps Interest Rate at 4.5%
Published: 7/6/2010 9:01:24 AM By: TradingEconomics.com, RBA

Australia’s central bank paused in raising borrowing costs for a second month, and dropped a reference to the level of its benchmark being appropriate for the “near term,” citing concern about the global outlook.

ECB Lends Banks Less Than Estimated
Published: 6/30/2010 10:06:09 AM By: TradingEconomics.com, Reuters

Banks borrowed less than expected from the European Central Bank in a key funding operation on Wednesday, easing fears about their ability to cope with the repayment of close to half a trillion euros in 12-month funds on Thursday.

Fed Holds Interest Rates Steady
Published: 6/23/2010 2:28:31 PM By: TradingEconomics.com, FOMC

The Federal Reserve acknowledged a faltering pace of U.S. economic recovery and renewed its vow to hold benchmark interest rates exceptionally low for an extended period.

Swiss National Bank Keeps Interest Rates Unchanged
Published: 6/17/2010 10:07:18 AM By: TradingEconomics.com, SNB

After its regular quarterly policy-setting meeting the SNB left the target range for its benchmark three-month Swiss franc London interbank offered rate unchanged at 0.0%-0.75%.