Argentina's interest rate is so high, so after the Argentine deposits, can't he sit and eat interest? Actually, it is not. Inflation in Argentina is very serious, and the rate of currency depreciation is very alarming. At the beginning of 20 18, the exchange rate of pesos against the US dollar was 18: 1, which means that 180,000 pesos can be exchanged for10,000 US dollars, and by the end of 20 18, it became 37: 60.
Several countries with low interest rates have negative interest rates, such as Sweden -0.75, Denmark -0.65 and Sweden -0.25.
Sweden with the lowest interest rate is a developed country in Europe. Due to the low level of inflation, the interest rate policy has achieved negative interest rates to promote consumption recovery. However, according to the expectation of the Swedish central bank, the policy interest rate will rise to positive in the first quarter of 2020, and it will go out of the long-lasting negative interest rate era.
Second, the interest rate level in China.
Our country's current one-year deposit interest rate is 1.5% (the benchmark interest rate of the central bank), ranking 29th among the top 50 countries in the world in terms of GDP.
In fact, our interest rate level is relatively low, compared with the BRICS countries. India's repo rate is 5.4% (four interest rate cuts this year), Brazil's index rate is 6.5%, Russia's benchmark rate is 7.75%, and South Africa's repo rate is 6.5%.
The main reason is that China's economy has been in the forefront after decades of rapid development. The GDP of 20 14.6 1 trillion dollars accounts for 17.03% of the global GDP, making it the second largest economy in the world after the United States (20.49 trillion dollars). Under this base, if we want to maintain the first ten years, and the current price index growth is relatively moderate, it will remain at 3% for a long time. There is no need to raise interest rates to curb inflation for the time being.
Third, then why are interest rates so different among countries?
Why are interest rates so high in some countries and so low in others? There is a big difference. What factors determine these huge differences in interest rates? Are there any significant differences?
In fact, through these interest rate levels, we can see a more obvious feature. The more developed a country's economy is, the lower its interest rate is. Most developed countries have low interest rates because they have passed the stage of rapid development, and high interest rates will suppress economic vitality. The gross economic value of these countries is at a high base and low growth rate. At this time, the low interest rate policy is generally implemented, and even some developed countries have implemented negative interest rate policies. Including Japan, are now implementing negative interest rates, and the benchmark interest rate is -0. 1%.
From the perspective of economic growth, countries with fast growth will have higher relative interest rates. For example, ten years ago, our country's interest rate was relatively high, and under the pressure of inflation, we raised interest rates several times. In recent years, with the slowdown of economic growth, the interest rate level has not stopped falling, and it is expected to fall further, just to reduce the cost of savings and loans, release liquidity to the market, drive funds to flow to entities, and promote the development of the real economy.
However, countries with ultra-high interest rates (for example, the one-year deposit rate exceeds 20%) need to be treated differently. For example, in Argentina and Venezuela, interest rates are very high, usually because inflation is so serious that currencies will soon become worthless. Only through ultra-high interest rates can we curb inflation, but too high interest rates will in turn hit the real economy. Once the funds are withdrawn, the currency will soon continue to depreciate.