Postcard from Spain: on the road to ZIRP but where next?

Chief Investment Officer and founder of Aitken Investment Management
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Dear subscribers,

The other day we saw the Reserve Bank of New Zealand cut interest rates by a surprise -.5% to 1%. The NZ dollar fell -2.5% instantly and dragged down the Australian dollar to a 10-year low of around US67 cents.

It is blatantly clear we are in a race to ZIRP (zero interest rate policy) globally. A trade war between the USA and China has now moved to a global currency devaluation war, led by central banks. Just remember, central banks have limitless firepower and unconventional tools to deploy.

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