China’s currency devaluation could spark ‘tidal wave of deflation’
China’s devaluation of the yuan has sent shockwaves through global markets.
Edwards, of the bank Société Générale, argues that as well as creating a challenge for China’s Asian rivals, by making its exports more competitive, a cheaper yuan will send “a tidal wave of deflation” breaking over the world economy.
Central banks in the US and the UK have primed investors for interest rate rises.
