Policy Interest Rate (%)

Policy Interest Rate (%)

The policy interest rate is an interest rate that the monetary authority (i.e. the central bank) sets in order to influence the evolution of the main monetary variables in the economy (e.g. consumer prices, exchange rate or credit expansion, among others). The policy interest rate determines 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. These banks will then offer financial products to their clients at an interest rate that is normally based on the policy rate.

Different countries have different policy interest rates. The most common are the overnight lending rate, discount rate and repurchase rate (of different maturities). Normally, central banks use the policy interest rate to perform contractive or expansive monetary policy. A rise in interest rates is commonly used to curb inflation, currency depreciation, excessive credit growth or capital outflows. On the contrary, by cutting interest rates, a central bank might be seeking to boost economic activity by fostering credit expansion or currency depreciation in order to gain competitiveness.

The table below shows the policy interest rate in percentage (end of period) by country for the last five years.

Looking for forecasts? FocusEconomics Consensus Forecasts cover approx. 30 macro-economic indicators per country for a 5-year forecast period and quarterly forecasts for the most important economic variables. Get Details.

Interest Rate Data

2015 2016 2017 2018 2019
Albania1.751.251.251.001.00
Angola11.0016.0018.0016.5015.50
Armenia8.756.256.006.005.50
Australia2.001.501.501.500.75
Austria-  -  -  -  -  
Azerbaijan3.0015.0015.009.757.50
Bangladesh5.005.005.005.005.00
Belarus25.0018.0011.0010.009.00
Belgium0.050.00.00.00.0
Bolivia8.077.958.118.048.40
Botswana6.005.505.005.004.75
Brazil14.2513.757.006.504.50
Brunei5.505.505.505.505.50
Bulgaria0.010.00.00.00.0
Cambodia1.421.441.53-  -  
Canada0.500.501.001.751.75
Chile3.503.502.502.751.75
China4.304.304.304.314.15
Colombia5.757.504.754.254.25
Croatia3.003.003.003.003.00
Cyprus-  -  -  -  -  
Czech Republic0.050.050.501.752.00
DR Congo-  -  -  -  -  
Denmark0.050.050.050.050.05
Dominican Republic5.005.505.255.504.50
Estonia-  -  -  -  -  
Ethiopia7.507.507.007.007.00
Eurozone0.050.00.00.00.0
Finland0.050.00.00.00.0
France-  -  -  -  -  
Georgia8.006.507.257.009.00
Germany-  -  -  -  -  
Ghana26.0025.5020.0017.0016.00
Greece-  -  -  -  -  
Guatemala3.003.002.752.752.75
Hungary1.350.900.900.900.90
Iceland5.755.004.254.503.00
India6.756.256.006.254.40
Indonesia7.504.754.256.005.00
Ireland-  -  -  -  -  
Italy-  -  -  -  -  
Jamaica0.253.003.251.750.50
Japan0.10-0.10-0.10-0.10-0.10
Kazakhstan16.0012.0010.259.259.25
Kenya11.5010.0010.009.008.50
Korea1.501.251.501.751.25
Laos5.635.315.005.00-  
Latvia-  -  -  -  -  
Lithuania0.0-  -  -  -  
Luxembourg-  -  -  -  -  
Malaysia3.253.003.003.253.00
Malta-  -  -  -  -  
Mexico3.255.757.258.257.25
Moldova19.509.006.506.505.50
Mongolia13.0014.0011.0011.0011.00
Mozambique-  -  -  -  -  
Myanmar10.0010.0010.0010.0010.00
Netherlands-  -  -  -  -  
New Zealand2.501.751.751.751.00
Nigeria11.0014.0014.0014.0013.50
North Macedonia3.253.753.252.502.25
Norway0.750.500.500.751.50
Pakistan6.505.755.756.5012.25
Peru3.754.253.252.752.25
Philippines4.003.003.004.754.00
Poland1.501.501.501.501.50
Portugal-  -  -  -  -  
Romania1.751.751.752.502.50
Russia11.0010.007.757.756.25
Serbia4.504.003.503.002.25
Singapore0.88-  -  -  -  
Slovakia-  -  -  -  -  
Slovenia-  -  -  -  -  
Spain-  -  -  -  -  
Sri Lanka7.508.508.759.008.00
Sweden-0.35-0.50-0.50-0.500.0
Switzerland-0.75-0.75-0.75-0.75-0.75
Taiwan1.631.381.381.381.38
Tajikistan8.0011.0016.0014.0012.25
Tanzania16.0016.009.007.007.00
Thailand1.501.501.501.751.25
Trinidad and Tobago4.754.754.755.005.00
Turkey7.508.008.0024.0012.00
USA0.500.751.502.501.75
Uganda17.0012.009.5010.009.00
Ukraine22.0014.0014.5018.0013.50
United Kingdom0.500.250.500.750.75
Uzbekistan9.009.0014.0016.0016.00
Vietnam6.506.506.256.256.00
Zambia15.5015.5010.259.7511.50

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Interest Rate Economic News

  • New Zealand: RBNZ stands pat in February

    February 24, 2021

    At its meeting on 24 February, the Reserve Bank of New Zealand (RBNZ) decided to hold the official cash rate (OCR) steady at its record low of 0.25%, and at the same time left the scale of its monetary stimulus program unchanged.

    Read more

  • Hungary: MNB stands pat in February

    February 23, 2021

    At its 23 February meeting, the Monetary Council of the Hungarian National Bank (MNB) decided to keep the base rate unchanged at the all-time low of 0.60%, and also held all other instruments steady, which was in line with market analysts’ expectations. The MNB’s decision to stand pat was due to a resilient economy and sustained price pressures.

    Read more

  • Guatemala: Central Bank keeps rate unchanged in February

    February 22, 2021

    The Monetary Board of the Central Bank of Guatemala stood pat at its 17 February meeting, leaving the monetary policy rate unchanged at the all-time low of 1.75% and marking the fourth consecutive hold. In deliberating the decision, the Bank noted that inflation is expected to land within the 3.0%–5.0% tolerance band this year.

    Read more

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