Bank Interest Rates Nearing Zero

POLITICS - Benchmark interest rates in selected countries.

4.25% Australia
3.75% Sweden
3% Britain
2.5% European Central Bank
2.25% Canada
1% Switzerland
1% U.S.
0.3% Japan

Due to the recession in the United States the U.S. Federal Reserve has already whittled its benchmark federal funds rate down to 1% from 5.25% since September, 2007, and is widely expected to cut it to 0.5% at its next scheduled rate-setting meeting later this December.

In normal times such lowering of interest rates would stimulate demand by making it cheaper to borrow money.