Central bank interest rates

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CountryRateDirectionPrevious   Modified        
United States 2.250 % 2.000 % 09-26-2018
Australia 1.500 % 1.750 % 08-02-2016
Chile 2.750 % 2.500 % 10-18-2018
South Korea 1.750 % 1.500 % 11-30-2018
Brazil 6.500 % 6.750 % 03-22-2018
Great Britain 0.750 % 0.500 % 08-02-2018
Canada 1.750 % 1.500 % 10-24-2018
China 4.350 % 4.600 % 10-23-2015
Czech Republic 1.750 % 1.500 % 11-02-2018
Denmark 0.050 % 0.200 % 01-19-2015

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CountryRateDirectionPrevious   Modified        
Europe 0.000 % 0.050 % 03-10-2016
Hungary 0.900 % 1.050 % 05-24-2016
India 6.500 % 6.250 % 08-01-2018
Indonesia 6.500 % 6.750 % 06-16-2016
Israel 0.250 % 0.100 % 11-26-2018
Japan -0.100 % 0.000 % 02-01-2016
Mexico 7.750 % 7.500 % 06-21-2018
New Zealand 1.750 % 2.000 % 11-10-2016

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CountryRateDirectionPrevious   Modified        
Norway 0.750 % 0.500 % 09-20-2018
Poland 1.500 % 2.000 % 03-04-2015
Russia 7.750 % 7.500 % 12-14-2018
Saudi Arabia 2.750 % 2.500 % 09-27-2018
South Africa 6.750 % 6.500 % 11-22-2018
Sweden -0.500 % -0.350 % 02-11-2016
Switzerland -0.750 % -0.500 % 01-15-2015
Turkey 24.000 % 17.750 % 09-13-2018

See article: predicting forex trends thanks to interest rates

The Carry Trade technique

The Rollover or Swap

All open positions (at the end of a day of trading) must be "rolled over" to the next day. The interest rate differential between the two currencies will determine whether a credit or a debit is applied to each client's account.

Carry Trade

This technique entails borrowing from a currency whose interest rate is generally low (usually the yen) and investing this money in assets or currencies that earn significantly higher rates. An example would be if you borrowed yen at a rate of 0.5% and invested in New Zealand at a rate of 8.25%.

This type of transaction attracts a large range of investors: both individuals as well as hedge funds, not to mention institutional investors.

The risk is that the yen appreciates in value, which means that any gains that you achieve with a foreign interest rate would be offset by the higher amount you need to pay back to Japanese lenders.