Market Update

The Swiss National Bank increased its 3-month Swiss Libor 0.25 percent in September to 2.75 percent. The increase is the 10th 25-basis point rise since the end of 2003, and the third in 2007.

The Swedish Risbank raised its repo rate 0.25 percent in September to 3.75 percent. The rate has been raised nine times since January 2006.

The Central Bank of Taiwan increased its discount rate 0.125 percent in September to 3.25 percent. The discount rate stood at 1.375 percent in December 2003 but has more than doubled after 12 rate hikes.

The Central Bank of Brazil dropped its Selic rate 0.25 percent in September to an all-time low 11.25 percent, continuing a loosening cycle that began two years ago. In August of 2005, the Selic stood at 19.75 percent, but 18 cuts in 25 months have slashed the rate.

The Central Bank of Chile raised its discount rate 0.25 percent for the third straight month, boosting the rate to 5.75 percent in September. With the exception of a 0.25-percent cut in January, the discount rate has been increased 15 times since 2004.

The Czech National Bank raised its two-week repo rate 0.25 percent in late August to 3.25, remaining in a tightening cycle that included three rate hikes in four months.

The Central Bank of Turkey lowered its overnight borrowing rate for the first time since 2006, dropping it 0.25 percent to 17.25 percent in September. The rate had a huge, 4-percent jump in June 2006 that preceded another 0.25-percent move in July.

The National Bank of Hungary drastically cut its two-week deposit rate by 0.75 percent in September to 7.0 percent. The rate was hiked from 6 percent to start 2006 to 8 percent by year's end, but the big September move follows a quarter-point drop in June.