The international financial market over the world has grown very fast in the recent years. The private capital market is consistently improving since 1997. The buoyant capital flows among the nation's boundaries have raised the existing strength of the financial market domestically as well as internationally.
The markets over the world, particularly the financial market are largely affected by the hedge funds. The use of hedge funds has allowed making trading activities with large number of dealers.
Traditionally the banks were involved in the activities of lending and receiving deposits. In the recent years banking sector among the countries over the world are the main area of concern in the financial activities by rendering large number of services.
Banking sector has a major role in developing the financial sector in the rural areas. Development of the financial sector led to falling transaction cost on investment.
Faster development of the financial sector has given birth comparatively higher risk to the overall market. Most of the countries have realized the true benefits of a financial market and accordingly have stepped forward to develop the market. Role of financial Markets in the overall economic development have increased at a faster pace.
World Short Term Interest Rates
Over the year 2007-08, short term interest rates globally followed a path of mixed trend. In both US and UK the rate declined since December 2007. On the contrary, the rate in Euro area and some advanced economies increased at a faster pace. Among the emerging market economies, the rate witnessed a mixed trend.
Find below the short term interest rates among countries over the world:
