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Oil prices surged following a surprise production cut by OPEC+. The cartel stated that it aimed to maintain stability in the market, which essentially meant that it was unhappy with the dip in oil prices in mid-March. Additionally, it wanted to discourage speculators who had been betting on lower oil prices. OPEC+ is reducing output by an additional 1.15 million barrels per day, bringing its supply reduction to 3.66 million bpd, or 3.7% of global demand.
In March, the euro zone’s annual inflation rate slowed significantly to 6.9% from the previous month’s 8.5%. However, core inflation, which excludes volatile food and energy prices and is currently a major concern for economists, reached a new high of 5.7%.
Australia’s central bank kept its key interest rate at 3.6% after ten consecutive increases since May. Philip Lowe, the bank’s governor, acknowledged that “monetary policy operates with a lag” and that the rate hikes had yet to be felt. However, he also stated that further tightening may be necessary to reduce inflation.
2023-04-05 09:42:55
Post from www.economist.com