Financial FitnessGeneral Information

What Are Other Central Banks Doing?

By January 23, 2020 No Comments

I’ve talked in the past about the Federal Reserve using the Fed Funds Rate to help stabilize the economy by raising and lowering it, or what we call monetary policy to either jump start the economy or slow the economy down.  Not only does the US use monetary policy to stabilize the economy, most countries around the world use monetary policy too.

According to the Financial Times, 24 out of 41 central banks of the world’s major economies reduced their key benchmark interest rates during the third quarter of 2019.

In other words, out of all of the central banks, 59% of them cut their key interest rates during the third quarter in 2019 including the Federal Reserve of the United States.

During that same time period, there was only 3 of the 41 central banks in the world that raised rates.

 

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