Interest Rates Cut Across Multiple Countries

Iceland's Central Bank has lowered its key interest rate by 0.5% to 8.5%, marking the second consecutive cut as inflation eases to 5.1%. Meanwhile, the South African Reserve Bank is expected to reduce its benchmark repo rate to 7.75% amid lower inflation rates, though some economists argue for a more significant cut due to high unemployment and stagnant economic growth. In Nepal, lending rates have also decreased, with the average lending rate of commercial banks dropping to 9.33% from 12.11% a year ago. Australian lenders have cut both variable and fixed interest rates, with the average variable rate for owner-occupiers at 6.83%, amid increased competition among banks. Economists suggest that reducing the national deficit could help lower mortgage rates in the U.S. by affecting bond yields, despite the Fed's rate cuts. These global trends reflect a broader shift toward easing monetary policies in response to changing economic conditions.