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

Goldman Sachs chief economist Jan Hatzius proposes designing a new Financial Conditions Index (FCI).

Chanel Holden

2018-07-19 18:38:00 Thursday ET

Goldman Sachs chief economist Jan Hatzius proposes designing a new Financial Conditions Index (FCI).

Goldman Sachs chief economist Jan Hatzius proposes designing a new Financial Conditions Index (FCI) to be a weighted-average of interest rates, exchange rat

+See More

Foxconn invests $10 billion in a new manufacturing plant for LCD display panels in Wisconsin.

Chanel Holden

2017-07-13 08:35:00 Thursday ET

Foxconn invests $10 billion in a new manufacturing plant for LCD display panels in Wisconsin.

President Donald Trump has announced that a major Apple iPhone upstream supplier, Foxconn Technology Group (aka Hon Hai Precision Group), will invest $10 bi

+See More

American parents often worry about money and upward mobility for their children.

Becky Berkman

2019-01-03 10:38:00 Thursday ET

American parents often worry about money and upward mobility for their children.

American parents often worry about money and upward mobility for their children. A recent New York Times survey suggests that nowadays American parents spen

+See More

Facebook reaches a $5 billion settlement with the Federal Trade Commission over Cambridge Analytica user privacy violations.

Monica McNeil

2019-08-12 07:30:00 Monday ET

Facebook reaches a $5 billion settlement with the Federal Trade Commission over Cambridge Analytica user privacy violations.

Facebook reaches a $5 billion settlement with the Federal Trade Commission over Cambridge Analytica user privacy violations. The Federal Trade Commission (F

+See More

Apple becomes the first company to hit $1 trillion stock market valuation.

Becky Berkman

2018-08-01 11:43:00 Wednesday ET

Apple becomes the first company to hit $1 trillion stock market valuation.

Apple becomes the first company to hit $1 trillion stock market valuation. The tech titan sells about the same number of smart phones or 41 million iPhones

+See More

Many young and mid-career Americans fall into the financial distress trap in rural communities.

John Fourier

2019-08-01 11:33:00 Thursday ET

Many young and mid-career Americans fall into the financial distress trap in rural communities.

Many young and mid-career Americans fall into the financial distress trap in rural communities. A recent analysis of 25,800 zip codes for 99% of the U.S. po

+See More