Norway raised their interest rates by 50 basis points and announced another raise in August.
Switzerland raise their benchmark rate by 25 basis points.
The UK raised it’s benchmark rate by 50 basis points up to 5%.
China lowered its rate because they see ahead what is going on in the real economy.
If you’re confused by all of this seemingly contradictory data, you’re probably not alone. It is confusing.
The root of the uncertainty and the apparent contradictions can be found by looking deeper at the data. There is one thing that is the master resource that cannot fool anybody about what is happening in the economy. The economy and energy are inextricably intertwined. If the real economy is growing, then so too is energy consumption. If the economy is shrinking, then energy demand will fall.
Host: Victor Menasce