- United States Federal Reserve : 3%
- Bank of Japan : 0.5%
- European Central Bank : 4%
- Bank of England : 5.25%
- Swiss National Bank : 2.75%
- The Reserve Bank of Australia : 7.25%
- China : 7.47%
- Hong Kong SAR : 5%
- India : 7.75%
- New Zealand : 8.25%
Tuesday, March 4, 2008
Interest Rates 2008-03-03
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4 comments:
what is the interest rates will be using in KLSE?
The interest here is from the country central bank. Malaysia benchmark interest rate is 3.5%. This is the reference for the bank interest rate.
I hear from a friend saying people in usa borrow money from japan (due to interest rate very low), and use that money to go and invest into forex...
Is that real ah? If japan suddenly increase interest rate, then all those borrower will have big problem.
any comment on this case?
Yeah, lot of people borrow money in Japan and then invest or put money in the US bank. US bank give higher interest rate than Japan right? The risk is the exchange rate and the interest rate. This kind of trading call carry trade. They carry Japan money and trade in other country. That's why the interest rate in US can influence the exchange rate between USD and JPY. When carry trade people selling ther share because they affraid the USD will fall, there will be lot of seller out side and it will force the market down.
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