I have long been an advocate of the reduction of key interest rates in the so called Emerging Markets.
Therefore I was happy to hear the news that Bangladesh has cut its key rate from 7.75 percent to 7.25.
This reduction of 50 points may seem like a bold step, but it is a courageous step to be met with applause. Money should be as cheap and widely available as possible, and definitely it will spur growth, in this nation of hard-working and enterprising people.
Fair interest at six percent is an inspired wisdom of Benjamin Franklin, and somehow I believe it still holds true today, and I would suggest an aim towards this rate for all the economies, especially India, where the rate after nine months was cut 25 basis points, and Nigeria, where vast potential remains untapped as the interest remains high.
Just like China threw the books out the window and adopted a rational approach to development of their economy, increasing the money supply and easing the rate (or tigthening it) as necessary, likewise it would serve the other nations to do likewise, to serving their peoples' needs and providing them with the life-blood to fulfill their dreams of improvements in living standards and development of their natural and human resources. Money is magic, it makes a lot of things possible, and, again, if it is available to as many as cheaply the better.