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...
Greece definitely know how to grab headlines.
The referendum announcement to decide on whether to accept austerity or not. Then, Greece becoming the first developed country to default on the IMF. Then the capital controls being imposed. The Greeks stand by their Prime Minister, Tsipras when 61% vote No. And then, the controversial Finance Minister at that time, Yanis Varoufakis resigned After Referendum, paving the way for a last round of discussion between Greece and the Euro creditors.
One last chance to stay in Euro?
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| Can this marriage be saved? |
The warning has been given: German Chancellor Angela Merkel warned that “only a few days” are left to reach a deal.
Euro-area finance chiefs will discuss Greece’s request on a conference call Wednesday morning, the first step toward restarting negotiations that Greece broke off late last month. The rapprochement lessens the risk that the European Central Bank will pull the plug on Greek banks, which are bleeding cash and have been shut for seven business days.
The roadmap toward a possible third medium-term aid program emerged from Tuesday’s meeting of euro finance ministers, the first since Sunday’s anti-austerity referendum and the appointment of Euclid Tsakalotos as Greek finance minister.
Finnish Finance Minister Alexander Stubb, an outspoken critic of Greece’s economic management, termed the meeting a “good conversation” with the new Greek minister.
It definitely sound more like good news though but will it be too late?
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