Who will be the next to follow?
After the RBNZ decision to cut rates by more-than-expected earlier today, we're now seeing the Reserve Bank of India and the Bank of Thailand joining in on the action.
The RBI lowered its benchmark interest rate for the fourth time this year, cutting the repo rate by 35 bps to just 5.40% - the lowest since 2010. The move is a surprise - much like the RBNZ - considering markets only expected a 25 bps rate reduction.
Meanwhile, the BOT becomes the third central bank to cut rates today in a surprise move by lowering its benchmark interest rate to 1.50% from 1.75%. Expectation was for the central bank to keep rates on hold and the decision to cut was made via a 5-2 vote from the central bank's policy committee.
If this isn't a sign that US-China trade tensions and the global growth slowdown is leading us to a currency war of sorts, then I don't know what is. Game on.
