The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
The recent surge of all the prices of the commodities has make me recall about the same situation that has happened globally three years back. Back then, the price of the crude oil surge beyond USD100, the same thing that what we are seeing now. The surge of the crude oil price and other commodities can have serious effect to a lot of things especially in business. Cost of the raw materials used for manufacturing will increase, subsequently impact their earnings until these companies passed the cost to the consumers - which I assume asap. Nevertheless, global inflation is real and it is going to stay for quite some time, so we better get used to it until the Fed decided to stop printing the money......or put it in this way, until the US economy recovers. None of us would want to have reduced purchasing power, but it will happened. There are several things that we can do to cope with the global inflation, rising prices of the goods, properties and many more. The first to to do to cope w...