Global Interest Rates

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As leaders from the most power nations from around the world meet at the G20 summit to discuss coordinated measures to contain the global slowdown, central banks continue to modify their fiscal policies. In the latest attempt to revive the economy, the European Central Bank cut its benchmark rate by a less-than-expected 25 basis points today, sending its key rate to a fresh record low of 1.25%. On the news, the euro hit an intraday high of $1.3488 versus the dollar, benefiting from the lower than expected rate cut.

The ECB also lowered its deposit rate -a measure of how much is paid to euro-zone banks for cash kept overnight at the central bank- by a quarter point to 0.25%. The rate has become a measure of how much banks charge one another for overnight loans. (Read More)

Analysts widely expected a move by the European Central Bank, as weak economic data in the 16-nation euro zone along with easing inflation has given the ECB room for further rate cuts. The ECB's key rate has fallen by 3% since October to its lowest level in the 10-year history of the central bank.

The dollar index , which tracks the greenback’s standing against a basket of currencies, has declined nearly 5% since hitting a 3-year high on March 4th this year. The dollar's decline has occurred amid a roughly 20% gain for the S&P 500 from its March 9th close. Despite of recent drops in the US dollar, the greenback continues to trade in positive territory year-to-date against the euro and Japanese yen , with gains of 3.9% and 9.5% respectively.

Here is a look at where some of the world’s interest rates stand:

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