world interest rates

European Central Bank (ECB) cut official interest rate only by 25 basis points to 1.25 per cent.

Bank of England

At its policy-setting meeting yesterday, the Bank of England cut its key interest rate by 50 basis points to 0.5 per cent. Bank of England also became the first European central bank to implement quantitative easing policy, as it announced it would buy up to £75 billion ($166 billion)mostly in gilts over the next three months.

The Bank of England (BoE) cut official interest rates yet again on February 5th, from 1.5% to 1%, a new historic low. The decision to reduce rates for the fifth consecutive month came as little surprise as BoE thinks that the overall effect of rate cuts on the economy is positive, because they benefit firms as well as indebted households.

New Zealand's Reserve Bank has cut the official interest rate by 1.5 percentage points on Thursday.

As expected European Central Bank (ECB) has cut official interest rate by 0.5% to 2.0 per cent on Friday.

ECB hasn't ruled out further monetary easing, but reduction in official rates was unlikely in the very near term. At least until the next ECB "important meeting" which will take place in March.

As expected, the trend of reducing interest rates continues around the world in 2009.

First is the Bank Of England (BoE) which slashed interest rates by 50 basis points to 1.5 percent. It is the lowest level in the bank's 300 year history. Will we see BoE go to the same level as it's US counterpart?

The following table is reflecting the movement of official policy rates in various countries during 2008:

US Federal Reserve(FED) cut official interest rate to its lowest level in history this week. And for the first time official interest rates is not a specific target, but range of 0 percent to 0.25 percent.

Major European central banks, including the European Central Bank (ECB) and the Bank of England have joined the central banks of Australia and New Zealand in making deep rate cuts.

As predicted the European Central Bank (ECB), Bank of England, Swiss National Bank and Danish central bank cut interest rates on November 6. Most shocking cut was 1.50% by Bank of England. That is serious allegation that UK heading to a recession.

The following table is reflecting the movement of official policy rates in various countries during 2008: