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

Bank of Japan Increases the Amount of Low Interest Loans
Published: 9/1/2010 12:06:53 PM By: TradingEconomics.com, Bank of Japan

The Bank of Japan (BOJ) decided on Monday to keep its key interest rate at near-zero and boost the amount of low-interest loans to financial institutions. The measures were aimed at reining in the rising value of the yen.

Fed to Buy Treasuries with Maturing Mortgage Debt
Published: 8/10/2010 2:27:28 PM By: TradingEconomics.com, Federal Reserve

The US Federal Reserve on Tuesday said it would begin funneling proceeds from its maturing mortgage bonds into longer-term government debt in an effort to support a sputtering economic recovery.

Bank of Japan Keeps Policy on Hold
Published: 8/10/2010 12:40:27 PM By: TradingEconomics.com, Bank of Japan

Bank of Japan Governor Masaaki Shirakawa indicated the nation’s recovery has been resilient to the yen’s advance, supporting his board’s decision to keep policy unchanged.

ECB Leaves Rates on Hold
Published: 8/5/2010 10:44:06 AM By: Financial Times

The European Central Bank left its main interest rate unchanged on Thursday at a record low of 1 per cent for the 15th consecutive month.

BOE Keeps Stimulus in Place to Aid Recovery
Published: 8/5/2010 10:40:57 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 as officials sustained emergency aid for the economy during the biggest budget squeeze since World War II.

Australia Keeps Key Rate at 4.5%
Published: 8/3/2010 10:49:49 AM By: TradingEconomics.com, RBA

Australia’s central bank kept interest rates unchanged for a third month after slower inflation and diminished financial risks abroad left officials with little need for any shift in policy.

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.