Aug 15, 20231 min read

Global macro surprises

Busy week for Macro news and central bankers. #Japan just published its 2Q real gdp with an incredible 6% growth YoY. Adding its inflation rate of 3.3%, its economy is growing almost at 10% in nominal terms. That creates even more pressure for its yield curve control program, #ycc, and it’s 10 year bond keeps pushing higher. In #china, in the meantime, officials have decided they don’t like the youth unemployment data, and they have stopped publishing it. At the same time, as they face a big showdown, they’ve just cut their key policy interest rate by 15 bps to 2.5%. And #russia central bank just concluded an emergency meeting and decided to raise its key rate from 8.5% to 12% to defend the #rubble. These are big moves, that central bankers are forced to do to catch up to news and data. It doesn’t look like they have control on their respective economies.