The chart below shows the just-launched Central Bank News Carry Trade Index. Essentially the index is an indicator of the variance between interest rates
of central banks. The "all" (81 central banks) index was recorded at 772 basis points at the end of December 2011 (up from 664 basis points at the end of December 2010). This index shows a gradual rise in the average difference among central bank rates, driven largely by tightening among emerging market and frontier markets, while developed markets have kept monetary policy rates at all time lows.