Will Interest Rate Hike Impact Oil Stock Raising interest rate is to deal with overheated economy. The US dollar will be stronger which will traditionally lower the oil price. However, the more important factor for driving oil price is demand and supply. The Canada government is still providing assistance subsidies for business. The economy is actually under recovering from pandemic. The current unemployment rate for Canada is still high - about 6% but which is improving. The existing high inflation rate is really due to shipping problem resulting from COVID-19 rather than overheated economy. If Canada increases interest rate in 2022, it will not lower the inflation but will jeopardize the healing economy and throw all the past monetary easing and investment into ditch. The most of the world economy with exception of US has not been fully recovered. The oil demand will be increased extraordinarily in coming years as most other analysts. The following interesting data will demonstrate the impact of interest rate hike at this time :
Time : Jan 25, 2021 1:51 pm
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