Global Monetary Policy Rates – Nov, 2013: Global average falls further to 5.47% as 12 central banks cut rates, 3 raise

    Global interest rates fell further in November as 12 central banks cut their policy rates, most notably the European Central Bank (ECB), Chile, Peru and Thailand, while three banks - Brazil, Indonesia and Pakistan - raised rates to curb inflation.
    The Global Monetary Policy Rate (GMPR) – the average policy rate of the 90 central banks tracked by Central Bank News – fell to 5.47 percent at the end of November from 5.52 percent in October and 2012's average rate of 6.2 percent, continuing the trend of declining official interests since November 2011.
    During the month of November policy rates were cut by a total of 545 basis points while rates were raised by 125 points for a net decline of 420 points, the second largest monthly fall this year after January’s net drop of 476 points.
    In addition to the ECB, which cut its rate for the second time this year to 0.25 percent, the following central banks cut rates in November: Albania, Angola, Armenia, Chile, Congo, Hungary, Latvia, Peru, Romania, Serbia and Thailand.
    Through the first 11 months of this year, 41 central banks have reduced their policy rates on net basis compared with only eight banks that have raised their rates.
    This year’s top rate cutters remain Sierra Leone, Belarus and Mongolia but Hungary has been moving up the ranking all year and is now the fourth most aggressive rate cutter this year following its 16th consecutive rate cut in November.
    Among the eight central banks that have raised rates this year, Gambia was the most aggressive with a total rate rise of 600 basis points while Brazil and Indonesia occupy the second and third spots with total rate increases of 275 and 175 basis points, respectively.

                                    GLOBAL MONETARY POLICY RATES (GMPR) 

                   (Changes in November 2013 and year-to-date, in basis points)

COUNTRY	MSCI	NOVEMBER	YTD CHANGE
RATE CUTS:
SIERRA LEONE			-800
BELARUS			-650
MONGOLIA			-275
HUNGARY	EM	-20	-255
KENYA	FM		-250
LATVIA		-125	-225
VIETNAM	FM		-200
POLAND	EM		-175
BOTSWANA			-150
GEORGIA			-150
MOZAMBIQUE			-125
ROMANIA	FM	-25	-125
SERBIA	FM	-50	-125
ANGOLA		-50	-100
COLOMBIA	EM		-100
CONGO DEM. REP.		-100	-100
MEXICO	EM		-100
MOLDOVA			-100
SRI LANKA	FM		-100
TAJIKISTAN			-100
TURKEY	EM		-100
UKRAINE	FM		-100
ALBANIA		-25	-75
ISRAEL	DM		-75
AUSTRALIA	DM		-50
CHILE	EM	-25	-50
EGYPT	EM		-50
EURO AREA	DM	-25	-50
JAMAICA			-50
JORDAN	FM		-50
RWANDA			-50
THAILAND	EM	-25	-50
WEST AFRICAN STATES			-50
AZERBAIJAN			-25
INDIA	EM		-25
MACEDONIA			-25
MAURITIUS	FM		-25
PERU	EM	-25	-25
SOUTH KOREA	EM		-25
BULGARIA	FM		-1
ARGENTINA	FM		0
ARMENIA		-50	0
SUM:		-545	-5156
RATE RISES:
TUNISIA	FM		25
PAKISTAN	FM	50	50
ZAMBIA			50
GHANA			100
DOMINICAN REPUBLIC			125
INDONESIA	EM	25	175
BRAZIL	EM	50	275
GAMBIA			600
SUM:		125	1400
NET CHANGE:		420	-3756

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