Macquarie: Central Bank Quantitative Interest Rate Repression Creates "Slaves"

While central bank interest rate policy has been a relatively muted factor in stock market performance recently – successive rate hikes and hawkish Fed inclinations have mostly been warmly greeted by stock market advances – this pattern is about to change, predicts a July 18 Macquarie research report. Central bank quantitative interest rate repression, known euphemistically as “stimulus,” has created a mirage of tranquility that is visible, in part, through historically low stock market volatility amid a mostly volatile geopolitical and national situation. The situation cannot be reversed and will result in a situation where “slaves remain slaves.”