Policy Interest Rate

Global Ranking

percentSource: IMF
Current Rank
Country
Value
Latest Reading
Previous Rank
Previous Value
1Argentina977-2023197
2Turkey17.57-2023215
3Brazil13.757-2023313.75
4Colombia13.257-2023413.25
5Hungary137-2023513
6Mexico11.257-2023611.25
7Chile10.257-2023611.25
8Iceland8.757-202388.75
9Russia8.57-2023117.5
10South Africa8.257-202398.25
11Peru7.757-2023107.75
12Czech Republic77-2023127
12Romania77-2023127
14Poland6.757-2023146.75
15India6.57-2023156.5
15Serbia6.57-2023176
17Philippines6.257-2023166.25
18Macedonia67-2023185.75
18Saudi Arabia67-2023185.75
20Hong Kong5.757-2023215.5
20Indonesia5.756-2023185.75
22New Zealand5.57-2023215.5
23United States5.387-2023235.13
24Canada57-2023254.5
24United Kingdom57-2023254.5
26Israel4.757-2023244.75
27Australia4.17-2023274.1
28Sweden3.757-2023293.5
28Norway3.757-2023313.25
30China3.557-2023283.65
31South Korea3.57-2023293.5
32Denmark3.357-2023342.85
33Malaysia37-2023323
33Morocco36-2023323
35Thailand27-2023352
36Switzerland1.757-2023361.5
37Croatia07-2022370
38Japan-0.17-202338-0.1

Definition of Policy Interest Rate

The interest rate which best captures the monetary authorities' policy intentions. Different countries have different policy interest rates. The most common are the overnight lending rate, discount rate and repurchase rate (of different maturities). In the USA the policy rate is the federal funds rate. The federal funds rate is the interest rate at which depository institutions trade federal funds (balances held at Federal Reserve Banks) with each other overnight. The federal funds rate is essentially determined by the market but is influenced by the Federal Reserve through open market operations to reach the federal funds rate target. In the Euro area the policy rate is the main refinancing operations rate. The main refinancing operations (MRO) rate is the interest rate banks pay when they borrow money from the ECB for one week. When they do this, they have to provide collateral to guarantee that the money will be paid back. The policy interest rates determine the levels of the rest of the interest rates in the economy, since it is the price at which private agents (mostly private banks) obtain money from the central bank.

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