Economies: your tiny rate is frozen
The fear of stagflation is causing central banks to hold interest rates.
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As Australian companies brace themselves for an expected downturn bottoming out in June 2009, other governments are trying to protect their economies by holding interest rates steady. And for some that means steady and low.
Korea, for example, reaffirmed on Friday that its rate would remain at 5%.
But even that seems high compared to some countries.
The UK held rates at 5.25 last week, but some commentators had expected that rate to fall in anticipation of US rates reducing. But the Fed's Richard Fisher said last week not to expect further cuts after the dramatic 1.25% drop in January.
But Japan held steady - at a remarkable 0.25%.
New Zealand, which is often said to have the highest interest rates in the developed world, has an official cash rate of 8.25%. That has translated into real lending rates of as much as 15% although now businesses say they are seeing rates of nearer 10%.
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