Central Banks Race to Bottom With Big August Rate Cuts

(Bloomberg) --

August has been a busy month for central bankers across the world, with a streak of bigger-than-expected interest-rate cuts from New Zealand and India to Egypt, Brazil and beyond. The race to the bottom started just after the Federal Reserve’s late-July easing, its first since 2008, that has left policy makers elsewhere with more room for stimulus as they try to pre-empt a potential economic downturn. A decade into the global expansion, the risk of recessions are rising alongside weakening manufacturing and more trade-war uncertainty.

To contact the reporter on this story: Michelle Jamrisko in Singapore at mjamrisko@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Matt Turner

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