Interest Rates February 2008

The People’s Bank of China raised its one-year lending rate to 7.47 percent in December. This 0.18 percent raise was the sixth of 2007, where rate increases totaled 1.08 percent overall.

The Central Bank of the Philippines lowered its overnight borrowing rate 0.25 percent to 5.25 percent in January, the fourth 0.25-percent decrease in six months.

The Central Bank of Taiwan raised its discount rate 0.125 percent to 3.375 in January. Taiwan’s rates have steadily increased over the last several years, adding 1.5 percent over the last three years.

The Central Bank of Chile raised its discount rate 0.25 percent in January to 6.25 percent. This is the fifth raise in a year, totaling 1.25 percent since January 2007.

The Bank of Israel raised its short-term lending rate 0.25 percent to 4.25 percent in January. This raise returns the rate to its January 2007 level after it fell to 3.5 percent in the middle of the year.

The Central Bank of Turkey decreased its overnight borrowing rate 0.25 percent in January to 15.5 percent. This is the fifth decrease in a row since Turkey raised rates 4.5 percent to 17.5 percent in July 2006.

The National Bank of Ukraine raised its discount rate 2.0 percent to 10 percent in January, the first rate change in more than a year.

The National Bank of Romania raised its discount rate 0.5 percent in January to 8.0 percent. The raise follows four rate cuts since February 2007 when the rate also stood at 8.0 percent.