For each country, it's shown the period of the last rate review, and the comparison to the previous value.
In yellow, the most recent modifications.
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This rate, often referred to as the policy rate, serves as the cornerstone for the cost of money within the national financial system. It is a critical tool used by central banks to implement monetary policy and influence economic activity.
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By setting the Central Bank Rate, the central bank can influence several key aspects of the economy:
- Lending Demand: Lower rates tend to boost borrowing and spending, while higher rates can reduce demand for loans and curtail spending.
- Inflation: Central banks use rate adjustments to control inflation. Lowering rates can increase inflation if the economy overheats, while raising rates can help reduce inflation by slowing down economic activity.
- Financial Stability: The central bank rate is also used to ensure financial stability. By adjusting the rate, central banks can address issues such as asset bubbles or excessive credit growth, thereby maintaining a balanced and stable financial system.
Implementation
The central bank periodically reviews and sets the policy rate based on current economic conditions and future outlooks. Decisions are often influenced by various economic indicators, such as inflation rates, employment levels, and gross domestic product (GDP) growth.
These rate changes are announced through monetary policy statements, which provide guidance to financial markets and the general public about the central bank’s economic assessment and future policy direction.
In summary, the Central Bank Rate is a pivotal instrument in the central bank’s toolkit, used to guide the economy towards desired outcomes such as stable prices, full employment, and sustainable growth. By understanding the implications of changes in this rate, businesses, investors, and consumers can make more informed financial decisions.
