At the G20 meeting two months ago, members pledged to “refrain from competitive devaluation.”
But the euro's fall has left many countries worried about their exports.
The Czech central bank began selling its own currency last week, forcing the koruna down by 4.4 per cent against the euro.
Peru’s central bank cut borrowing costs on Nov. 4 for the first time in four years, citing slow export growth.
New Zealand’s central bank has delayed expected rate hikes and Australia’s Reserve Bank chairman says its currency is overvalued and it may be forced to cut rates.
The Bank of Japan cut rates six months ago, but is still struggling to meet its inflation targets. Rickards believes the yen may sink as low as 110 to the US dollar.
Rickards said cutting rates is the wrong way to boost export growth and stimulate economies.
- Source, CBC: