Fear Over Trade And Currency Wars Prompting Monetary Action Around The Globe.
New Zealand’s central bank stunned investors and sent the kiwi tumbling by dropping its benchmark rate by 50 basis points, double the expected reduction. Thailand also surprised, cutting by 25 basis points. India’s central bank lowered its rate by an unconventional 35 basis points. As President Donald Trump blames slowing growth on a strong dollar and the Federal Reserve’s reluctance to cut rates deeper, one of the FOMC’s doviest members said not so-fast. Markets should get used to greater trade uncertainty, Federal Reserve Bank of St. Louis President James Bullard said Tuesday, sticking with his prediction that just one more rate cut will come this year. Meanwhile, benchmark German rates dropped to a fresh record after industrial production registered the biggest annual decline in almost a decade as the European Central Bank mulls a fresh round of monetary stimulus.