Not only in the US, interest rates will rise here as well. And possibly soon

by time news

Not quiet in January. For a moment, it seemed that 2022 would continue just as last year ended – with patient anticipation of the end of the plague. But the financial markets have no patience and they are operating at their own pace. And we? You get a stormy week – from the world’s stock exchanges, through the bond markets to oil.

The world’s leading technology index, NASDAQ, is currently down 10% since November and has in fact entered the territory of “correction”.

At the same time, oil that a year and a half ago traded at a negative price – climbed this week to the highest level since October 2014. In the background, a special report issued by the International Energy Agency (IEA) according to which the market looks tighter than previously thought. In other words, the agency says there is a fear of a shortage of oil, which could affect world supply and drive up prices. At the same time, the IEA also claims that the global supply surplus, which peaked about a year ago, is rapidly declining and the demand for oil is on its way to pre-epidemic levels. Goldman Sachs also did not ignore last week’s rise in oil prices and raised forecasts to $ 100 per barrel of oil in the third quarter of 2022.

In episode number 182 of Calcalist’s Money Engines podcast with Psagot economist and chief strategist Uri Greenfeld we talked about the reasons for the turmoil in the markets, the sharp rise in US bond yields, and the impending rise in interest rates in the US economy. And also – about the Bank of Israel and inflation, which will probably force us to get used to a situation in which the interest rate will rise this year.

Pleasant listening!

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