Central banks in India, Thailand, and New Zealand lower their interest rates in response to the Federal Reserve rate cut.

Daisy Harvey

2019-09-11 09:31:00 Wed ET

Central banks in India, Thailand, and New Zealand lower their interest rates in a defensive response to the Federal Reserve recent rate cut. The central banks try to institute interest rate cuts to fend off any economic harm from the negative spiral of U.S.-China trade escalation, Brexit trade and capital exodus, and geopolitical confrontation in the South China Sea.

Australia may be the next to act in accordance with this dovish cycle of international interest rate reductions, and the likely Australian dollar depreciation can help boost Aussie exports worldwide.

On Wall Street, the major U.S. stock market indices such as S&P 500, Dow Jones, Nasdaq, and MSCI USA plummet 3%-5% as a result. Before the dust settles on Sino-American trade conflict resolution, the Chinese central bank lets the renminbi currency weaken to 7-yuan-per-greenback in more than a decade. Any aggressive greenback depreciation (or Federal Reserve downward interest rate adjustment) may risk upsetting a reasonably stable global economic order of low inflation rates, exchange rates, and non-agribusiness employment levels in the decade after the global financial crisis of 2008-2009. The negative ripple effects can lead to more economic headwinds and fewer monetary policy levers for many central banks worldwide.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

Response to USPTO fintech patent protection and accreditation

Andy Yeh Alpha

2023-01-09 10:31:00 Monday ET

Response to USPTO fintech patent protection and accreditation

Response to USPTO fintech patent protection As of early-January 2023, the U.S. Patent and Trademark Office (USPTO) has approved our U.S. utility patent

+See More

President Trump meets Chinese President Xi for better economic reforms.

Rose Prince

2017-03-21 09:37:00 Tuesday ET

President Trump meets Chinese President Xi for better economic reforms.

Trump and Xi meet in the most important summit on earth this year. Trump has promised to retaliate against China's currency misalignment, steel trade

+See More

U.S. economic inequality increases to pre-Great-Depression levels.

Fiona Sydney

2019-02-17 14:40:00 Sunday ET

U.S. economic inequality increases to pre-Great-Depression levels.

U.S. economic inequality increases to pre-Great-Depression levels. U.C. Berkeley economics professor Gabriel Zucman empirically finds that the top 0.1% rich

+See More

Federal Reserve confirms that all of the 34 major banks pass their annual CCAR macro stress tests.

Apple Boston

2017-05-31 06:36:00 Wednesday ET

Federal Reserve confirms that all of the 34 major banks pass their annual CCAR macro stress tests.

The Federal Reserve rubber-stamps the positive conclusion that all of the 34 major banks pass their annual CCAR macro stress tests for the first time since

+See More

Central banks learn to weigh the monetary policy trade-offs between output and inflation expectations and macro-financial stress conditions.

Becky Berkman

2026-01-31 10:31:00 Saturday ET

Central banks learn to weigh the monetary policy trade-offs between output and inflation expectations and macro-financial stress conditions.

  In recent years, several central banks conduct, assess, and discuss the core lessons, rules, and challenges from their monetary policy framework r

+See More

White House chief economic adviser Larry Kudlow points out that the recent U.S. dollar strength shows a clear sign of investor optimism.

James Campbell

2018-08-13 12:39:00 Monday ET

White House chief economic adviser Larry Kudlow points out that the recent U.S. dollar strength shows a clear sign of investor optimism.

White House chief economic adviser Larry Kudlow points out that the recent U.S. dollar strength shows a clear sign of investor confidence and optimism. Gree

+See More