The so-called BRIC group of Brazil, China, India and Russia have the four most active central banks among Group of 20 nations.
The CHART OF THE DAY shows that each of the countries has made more than 20 changes to benchmark interest rates or reserve requirements over the past four years.
No other central bank in the G-20 has implemented more than 19 changes, with policy makers in emerging-market peers Mexico and South Korea matching the European Central Bank’s 12. The BRICs have had to cope with “much more volatile” inflation than other nations, causing the frequent rate changes and heightening the chance for policy error, said Nick Chamie, head of emerging markets at RBC Capital Markets in Toronto.
“To a varying degree, the more volatile the interest-rate and economic cycle, the more possibilities of making some policy mistakes,” Chamie said in a telephone interview. “So far they have managed their cycle pretty well.”
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