Interest Rates December 2007

The Reserve Bank of Australia raised its cash rate 0.25 percent in November to 6.75 percent. The increase is the second in 2005, but just the fifth since the end of 2003.

Sweden’s Riksbank raised its repo rate 0.25 percent in late October to 4 percent. Sweden has increased rates twice in two months and 10 times since the rate stood at 1.5 percent in December 2005.

The Central Bank of the Philippines dropped its overnight borrowing rate 0.25 percent in November for the second straight month, sending the rate down to 5.5 percent.

The Bank of Mexico raised its 28-day Cetes rate 0.1 percent in October to 7.3 percent, the third rate increase in 2007. Mexico had previously been in a loosening cycle, dropping the rate from 9.6 percent in June 2005.

The Central Bank of Turkey decreased its overnight borrowing rate 0.50 percent for the third month in a row in November, lowering the rate to 16.25 percent. The rate was 13.25 percent in April 2006 but gained more than 4 percent in the next few months.

The National Bank of Poland raised its 28-day intervention rate 0.25 percent in November to 5 percent. The rate went untouched for more than a year after dropping to 4 percent in February 2006.