Sweden's central bank, cut repurchase rates to -0.5%, but it feels like the wrong medicine. House prices are rocketing, growth is decent and unemployment is low. It feels like sawing off a patient's head to cure their migraine. We think a variable import tax would be a much simpler solution.
The game's far from over for oil producers but we're into what may well be the crucial quarter for all involved. US producers are suffering from lower prices but right now the supply shock story has moved east, with Iran, Saudi Arabia and Kuwait set to make the running over the next few months.
Some of the readers of Macro Matters have asked me whether I had perhaps written the last one, “The good and bad of low growth”, from a remote island during one of my shark diving trips, completely separated from markets, as I didn’t explicitly comment on all major events and headlines.