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From: Sally Ismail
Direct: A wave of interest rate cuts is sweeping the world as major central banks move toward monetary easing to curb the economic downturn.
After everyone followed a rather restrictive monetary policy led by the Federal Reserve until the end of last year, 2019 was considered a turning point.
While central banks around the world have recently been able to follow the severe tone of their monetary policy and gradually get rid of their quantitative easing programs as a result of the 2008 global financial crisis.
But the slowdown in global economic growth, growing concern over the escalating trade war between the US and China, and inflation figures far removed from central bank targets have further once pushed the world to adopt a cautious attitude and a tendency to lower interest rates to revive the economy.
See at Map of interest rate movements During the current year, until August 7, the reduction was the main feature worldwide because 40 countries Around the world, there has been a tendency to reduce the interest generated by sudden movements in emerging markets.
It should be noted that the number of times or volume at a time, whether to reduce or increase interest rates this year, has varied according to each country's vision and the fact that the central bank The country with the largest economy in the world Reduce interest rates only once 25 basis points (0.25%).
Although cautious by FederalBut the first steps towards a more favorable policy have been started with the announcement of a halt to the balance sheet program earlier than planned, while maintaining European Central Bank Tips for moving when needed.
The world has seen a rate reduction 61 times For the current year compared to 13 cases The disclosure recorded an increase in interest.
It is to highlight that Turkey The largest economy in the Middle East, it was the largest country to cut interest rates this year after immediately lowering its 425 basis points at its last meeting with positive signs of economy and inflation .
cordially Chile and Tajikistan The only two countries to rise from 25 months and 75 basis points in the first month of this year to a reduction of 50 and 150 basis points later in 2019.
While the largest number of rate cuts per country has been observed in Azerbaijan This has reduced interest rates five times this year to 8.25% India 4 times up to 5.40 percent.
At the same time, some countries have resorted to a sharp reduction of 100 basis points at a time such that Mozambique, Egypt and Ghana Interest fell to 13.25, 15.75 and 16%, respectively.
Also that Malawi Interest rates were reduced twice, by 100 and 150 basis points respectively, and borrowing costs were 13.5%.
The interest rate in both Australia and Serbia With a record low of 1% in Australia and 2.5% in the latter.
Unlike the general public, he went 6 countries Around the world, the upward trend in interest rates tends to increase due to the particular economic conditions of each case.
The most important of these countries Pakistan It raised interest rates four times this year, up 225 basis points to 13.25%, followed by Norway This has been doubled to bring borrowing costs to 1.25% currently.
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