Interest Rate Cuts: Leaders to Laggers

[rachels]

1. SWITZERLAND

The Swiss National Bank started leading the race to cut rates by 0.25%. Traders are betting on another cut in June. Current interest: 1.5% and Inflation: 1.4%

2) SWEDEN

Riksbank's 1st rate cuts on Wednesday's meeting. Reduced by 0.25%. Current interest: 3.75% and Inflation: 2.3%.

3) EUROZONE

The European Central Bank is expected to lower rates in June. Investors anticipate almost three cuts this year

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4) CANADA

Kept its rate unchanged at 5%. Investors anticipate a 60% possibility of rate cuts in June. Inflation jumped up to 2.9% in March because of upward price pressure.

5) BRITAIN

The Bank of England kept the interest rate unchanged at 5.25%. Signaled imminent rate cuts. The market is priced for a cut in August. (Inflation: 3.2%)

6) UNITED STATES

No immediate rate cuts. Inflation jumped up to 3.5%. Anticipating another rate hike. Investors pushing back their bets.

7) NEW ZEALAND RESERVE BANK

No rate cuts until October /November. Interest: 5.5% and inflation: 4%.

8/ AUSTRALIA RESERVE BANK

Held rates steady at 4.35%. No rate cuts in 6 months mean inflation is upward there.

9) NORWAY CENTRAL BANK

Left rates unchanged at 4.5% and expects no move before December or even next year.

10) JAPANThe Bank of Japan raised rates in March in its first hike in 17 years. Interest rate (current): 0.05% and Inflation: 2.7%

Source: Reuters