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Going negative? As trade war rages, central banks ponder radical steps

Updated : August 14, 2019 08:37 AM IST

In Asia, central banks in economies as diverse as Australia, India and Thailand have stunned markets by cutting aggressively rates in response to the broadening fallout from the US-China trade war.
The Sino-American tariff war has hurt global supply chains and manufacturing activity, slowing growth in export-reliant Asian economies and prodding some central banks to cut rates in the hope of giving exports a boost via a weaker currency.
A negative rate policy appears a useful tool to this end, as it helps widen the interest-rate gap with the United States and so keep their currencies from appreciating against the dollar.
Going negative? As trade war rages, central banks ponder radical steps

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