Global Interest Rates Increasing
July 22, 2007
Central banks across the world have reacted this July by increasing their benchmark lending rates in an effort to control domestic inflation. Included in the list of central banks to recently intervene with rate increases were (1) The Bank of Canada who increased their overnight lending rate to 4.25% and (2) The People’s Bank of China who raised their one-year deposit rate from 3.06 per cent to 3.33 per cent, and their one-year lending rate from 6.57 per cent to 6.84 per cent in an effort to control price inflation.
Current benchmark interest rates across the world which have increased over the 120 days include:
European Monetary Union 4.00%
United Kingdom 5.50%
Czech Republic 2.75%
Bank of Canada 4.25%
Hong Kong 6.75%
South Africa 9.50%
August could see more global interest rate increases as the Bank of England, Bank of Japan, and European Central Bank all meet to discuss interest rate policy. The U.S. Federal Reserve also meets in August, but no rate increase is expected.