Global interest rates fell further in November as 12 central banks cut their policy rates, most notably the European Central Bank (ECB), Chile, Peru and Thailand, while three banks - Brazil, Indonesia and Pakistan - raised rates to curb inflation.
The Global Monetary Policy Rate (GMPR) - the average policy rate of the 90 central banks tracked by Central Bank News - fell to 5.47 percent at the end of November from 5.52 percent in October and 2012's average rate of 6.2 percent, continuing the trend of declining official interests since November 2011.
During the month of November policy rates were cut by a total of 545 basis points while rates were raised by 125 points for a net decline of 420 points, the second largest monthly fall this year after January's net drop of 476 points.
In addition to the ECB, which cut its rate for the second time this year to 0.25 percent, the following central banks cut rates in November: Albania, Angola, Armenia, Chile, Congo, Hungary, Latvia, Peru, Romania, Serbia and Thailand.
Through the first 11 months of this year, 41 central banks have reduced their policy rates on net basis compared with only eight banks that have raised their rates.
This year's top rate cutters remain Sierra Leone, Belarus and Mongolia but Hungary has been moving up the ranking all year and is now the fourth most aggressive rate cutter this year following its 16th consecutive rate cut in November.
Among the eight central banks that have raised rates this year, Gambia was the most aggressive with a total rate rise of 600 basis points while Brazil and Indonesia occupy the second and third spots with total rate increases of 275 and 175 basis points, respectively.
GLOBAL MONETARY POLICY RATES (GMPR)
(Changes in November 2013 and year-to-date, in basis points)
|CONGO DEM. REP.||-100||-100|
|WEST AFRICAN STATES||-50|