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...
President Joe Biden and Indian Prime Minister Narendra Modi will announce a series of defense and commercial deals designed to improve military and economic ties between their nations during Thursday’s state visit at the White House, according to senior US officials.
General Electric Co. has unveiled plans to jointly manufacture F414 engines with state-owned Indian firm Hindustan Aeronautics Ltd. for the Tejas light-combat aircraft as part of an effort to enhance defense and technology sharing, given China's increasing assertiveness in the Indo-Pacific.
Biden and Modi will discuss a deal for MQ-9B SeaGuardian drones made by General Atomics and a new defense pact that will enable American Navy ships to undertake major repairs at Indian shipyards.
Additionally, the two leaders plan to debut a series of semiconductor deals designed to take advantage of Indian subsidies intended to bring advanced technology manufacturing to the South Asian nation.
Micron Technology Inc. will announce an investment of over $800 million towards a $2.75 billion semiconductor assembly and testing facility in India, while Applied Materials Inc. will unveil a new semiconductor center for commercialization and innovation. Chip manufacturer Lam Research will also announce a training program in India for up to 60,000 engineers.
The accords unfold as India has sought to increase its engagement on the global stage both diplomatically and economically, as detailed by officials who provided the plans anonymously in a call with reporters.
The announcements, which also include closer cooperation between the countries' space programs and efforts by the US to facilitate visas for Indian workers, occur on a day of elaborate pageantry for Modi, who will be attending his first official state visit at the White House.
The visit includes meetings with Biden and top American officials, a rare press conference for the Indian leader, and an afternoon address to the US Congress. Upon his arrival, the Bidens presented Modi with a vintage American camera, a book of American wildlife photography, and a signed first edition of the collected poems of Robert Frost.
In the evening, hundreds of celebrity guests and business executives, including Alphabet Inc. Chief Executive Officer Sundar Pichai and Microsoft Corp. CEO Satya Nadella, will gather under a tent on the South Lawn of the White House for a vegetarian-forward meal prepared by guest chef Nina Curtis. The menu includes grilled corn salad, stuffed portobello mushrooms, and rose and cardamom-infused strawberry shortcake. Musical performers will include Grammy Award-winning violinist Joshua Bell and Penn Masala, a South Asian a cappella group founded by University of Pennsylvania students.
Yet, the hope in both New Delhi and Washington is that the gathering signifies deeper and lasting relations, particularly as the two nations have a history of announcing cooperation agreements that fail to materialize.
Additional announcements include India's plans to sign the Artemis Accords, a framework governing joint missions and civilian space exploration, and a meeting between Modi and SpaceX chief Elon Musk in New York on Tuesday. NASA and the Indian Space Research Organization have also agreed to a joint mission next year to visit the International Space Station.
The US State Department also plans to begin a pilot program that would allow certain visas to be renewed domestically, eliminating the need for workers to travel back to their home countries. Some Indians in the US on H-1B and L-1 visas, frequently used by skilled workers and corporate executives, would be eligible for the program.
US aides stated that Indian officials are pleased with their efforts to cut through red tape that had previously hindered deals and are determined to ensure the agreements announced on Thursday are successfully implemented.
However, there are expected to be moments of tension in the meetings between the two leaders. India has been reluctant to impose sanctions on Russia since the invasion of Ukraine and has actively purchased Russian oil. Last month, India received 1.96 million barrels a day from Russia, a 15% increase compared to the previous high in April, according to data from Vortexa Ltd.
White House National Security Council spokesman John Kirby previously stated that the US hopes India will continue to abide by the price cap on Russian oil that Washington helped negotiate.
Biden is also expected to raise human rights issues with Modi, and the addition of the press conference on Thursday, which was not initially included in the White House schedule, was seen as a minor victory by some in the White House.
American officials declined to say whether Biden would advocate for the release of specific journalists who have been jailed as part of a crackdown by Modi's government on reporters and opposition leaders. Instead, one official mentioned that the American president would likely approach the discussion with humility, acknowledging challenges faced by the US regarding human rights and democracy.
(Source: Bloomberg)
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