Archive · 8 Aug 2025
Emerging Markets Lead with Rate Cuts as Peers Hold Steady
In July, central banks in many developing countries decided to lower interest rates, which makes it cheaper to borrow money.
This was the biggest set of cuts in several years.
Countries like Turkey and Russia made the biggest cuts.
Meanwhile, central banks in richer countries, like the US, kept their interest rates the same.
They're watching how US trade policies and other things are affecting the economy.
Experts think more changes might happen in the future, especially from banks like the US Federal Reserve.
Emerging market central banks delivered the largest rate cuts in years during July.
Seven developing economies cut rates by a total of 625 basis points.
Turkey and Russia led the easing push with significant cuts.
Developed market central banks, including the US Federal Reserve, held steady in July.
Uncertainty over US trade policies impacted global economies.
- Who
- Central banks of emerging and developed economies.
- What
- Emerging market central banks implemented significant interest rate cuts, while developed markets held steady.
- When
- July
- Where
- Developing and developed economies globally.
- Why
- To address economic uncertainty, including the impact of U.S. trade policies.
- Total Rate Cuts (July, EM)
- 625 basis points
- Countries with Rate Cuts (July)
- Turkey, Russia, Indonesia, South Africa, Malaysia, Poland, Chile
- G10 Central Banks Meetings (July)
- 6, with no rate changes
- Year-to-date Cuts (G10)
- 500 bps across 19 moves
- Year-to-date Cuts (EM)
- 1,910 bps across 32 moves