Is decoupling for real this time?

July 9, 2010 7:53am by

Decoupling? That failed thesis of late ’08, early ’09 where problems in the US brought the rest of the world down is now showing some legitimacy in the midst of sluggish growth in the US and parts of Europe. Following Australia’s big upside June jobs report where they created the population adjusted US equivalent of about 650k jobs, Canada’s change in employment today was even more impressive. Canada created the US equivalent of 850k jobs in June with an absolute figure of 93.2k, well above expectations of 20k and the unemployment rate fell to 7.9%, the lowest since Jan ’09. Also to the decoupling theme and following yesterday’s rate hike in Malaysia and last week’s in India, South Korea unexpectedly raised rates today by 25 bps to 2.25% as a BoK Gov said “policy interest rate is very low, compared with our economic growth pace and inflation.”

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