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 term Abenomics, referring to the economic policies advocated by Shinzo Abe since the December 2012 general election, which elected Abe to his second term as Prime Minister of Japan. Shinzo Abe, Prime Minister of Japan Abe's bold strategy is to tackle the stagnant economic climate in Japan that has lasted for 20 years and was overtaken by China in 2010 as the world's second largest. Abe tells voters that the strong economic medicine he has pursued for more than three years is Japan’s last chance to remain a world power, framing his policies as a matter of national security. After early promise, progress has stalled. WHAT HAPPENED TO JAPAN? Before we look at the current situation, it is important to understand the background that Japan was in....since the real estate and stock market bubble burst in the early 1990s, companies have focused on cutting debt and shifting manufacturing overseas. Wages stagnated and consumers reined in spending, leading to what was ...