A Wave Of Surprise Interest Rate Cuts Just Hit Global Markets This Week, And It’s Only Wednesday!

Three Surprise Rate Cuts This Week

The Bank of Korea just unexpectedly cut its key interest rate to 2.5% fom 2.75%.
This is pretty remarkable, considering that market economists have already been surprised by two other central bank rate cuts this week.
On Monday, the Reserve Bank of Australia unexpectedly lowered its key interest rate to 2.75% from 3%.
Earlier Wednesday, the National Bank of Poland unexpectedly cut its key interest rate to 3% from 3.25%.
These three surprise rate cuts follow two rate cuts made last week: the ECB cut to 0.5% from 0.75% on Thursday, and the Reserve Bank of India cut to 7.3% from from 7.5% on Friday.
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South Korea just went in for a surprise rate cut 2.75% to 2.50%. Everyone is throwing their hat into the ring. Incredible.
— John Kicklighter (@JohnKicklighter) May 9, 2013

Australia Seeks Cushion With Surprise Rate Cut

SYDNEY—Australia’s central bank cut interest rates to a record low Tuesday, seeking to cushion the economy from a strong currency that’s undermining the nation’s competitiveness and preparing for the end of a decadelong resources boom.
In a surprise move, the Reserve Bank of Australia, or RBA, lowered the benchmark cash-rate target to 2.75%, expressing concern that the Australian dollar remains close to 30-year highs. The high currency is crippling the nation’s manufacturers and exporters, while rate-sensitive sectors such as consumer spending and home-building have been slow to respond to a more than yearlong string of cuts by the bank.

Poland Cuts Interest Rates to Record Amid Lack of Recovery

Poland’s central bank cut its benchmark interest rate to a record low as the European Union’s largest eastern economy struggles with slowing growth.
The Narodowy Bank Polski lowered the seven-day reference rate by a quarter-point to 3 percent today, matching the estimate of 11 of 38 economists surveyed by Bloomberg. (POREANN) Two predicted a half-point cut and 25 forecast no change in borrowing costs.

India cuts interest rates, says little room for more easing

MUMBAI (Reuters) – India’s central bank cut its benchmark interest rate by 25 basis points on Friday for the third time since January, as expected, as growth slows and inflation ebbs, but said there is little room to ease monetary policy further, disappointing markets.
The Reserve Bank of India trimmed the repo rate to 7.25 percent, its lowest since May 2011, and kept the cash reserve ratio (CRR) for banks unchanged at 4 percent, also in line with expectations.