Europe, Japan, Switzerland, Sweden and Denmark are all very real and developed places. They also all have negative interest rates. This trend is both powerful and global. This is not happening in Timbuktu, this is happening in Paris, Tokyo, Zurich and Stockholm. Negative interest rates are Central Bankers new tool in fighting anemic growth and low inflation. You should not dismiss them. They have vast consequences for market valuations and discount rate assumptions. Those who dismissed Quantitative Easing (QE) 10 years ago failed to grasp the huge implications QE would have on markets and financial asset returns to their peril.

Angus Coote

I note today, following today's RBNZ cut, that ANZ only passed on 10bps off cuts to customers. Keeping the balance to restore Net Interest Margin. Only a matter of time before more out of cycle interest rate hikes from stretched Australian Banking sector