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The Bank of Canada’s (BoC) surprise decision to raise interest rates by 1 percentage point has shocked global markets and Canadian borrowers and raised expectations more central banks will follow with super-sized hikes. Key points: The Bank of Canada has raised interest rates by a full percentage point, while monetary authorities in Singapore and the Philippines have also tightened them sharply Former IMF chief economist Maurice Obstfeld worries the central bank is catching up after delaying rate hikes for too long He warned that rising interest rates too quickly around the world could trigger a major economic downturn like that seen in the 1980s The BoC raised its policy rate from 1.5 percent to 2.5 percent, the highest since 2008, in a bid to contain inflation. It is far from alone in raising interest rates quickly. Today, the Philippine central bank raised interest rates by 0.75 percentage points to 3.25 percent in an unscheduled move, while the Singaporean authorities also ti...

“Australasia’s #1 real estate coach and coach” Tom Panos, is “stressed” after “almost no buyers” at the Sydney auction on Saturday. I am STRESSED We have almost NO buyers. However I still think vendors should sell now, here’s why… Plus, John McGrath told me that 25 economists across Australia agree on this – the #real estate market will get worse before it gets better. https://t.co/fv4Hvrt1K5 — TOM PANOS (@tompanos) 9 July 2022 According to Panos: “I have six auctions today. Of the six I sold one out of six … And the only one that sold was the last. So I’m zero out of five until the auction I did this afternoon at 15.30… The first five auctions were pretty pathetic. Almost the only people there were agents and vendors… I barely had anyone signed up all day”… “People have turned around and thought to themselves, this [interest rate rises] to be really scary out there as a buyer, of which I think there must be some of them”… “This is the de...

The energy sector fell 5.8 percent and materials stocks 5 percent. Beach Energy fell 8 percent to $1.61 and Woodside Energy 6.9 percent to $30.20. It was the sector’s worst one-day loss since May 2020. However, the big four banks rallied on the prospect of improving lending profits as they passed the Reserve Bank of Australia’s half a percentage point hike to the official interest rate. Selling stretched across Asian equity markets with Japan’s Nikkei 225 on track for a 1.1 percent loss, Hong Kong’s Hang Seng Index 2.3 percent and China’s CSI 300 Index 2 percent. Sentiment was shaken by news that Shanghai had launched mass COVID-19 testing in nine districts after detecting cases over the past two days, reigniting concerns about a return to lockdown in China’s financial hub. Citi warned a recession could lead to crude oil surging to $65 per barrel by year-end and falling further to $45 by the end of 2023, in the absence of intervention by OPEC+, and ...