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 London Metal Exchange (LME) has approved the Red Sea port city of Jeddah in Saudi Arabia as a new warehouse delivery point for copper and zinc, the exchange announced on Monday.
Key Takeaways:
New Warehouse Location: Jeddah has been approved as a delivery point for copper and zinc. The listing will become active three months after the first warehouse company has been approved in this new location.
Strategic Importance: Warehouses registered with the LME, the world's largest and oldest metals trading venue, are typically situated in regions of significant metals consumption or major transit hubs such as Rotterdam.
Saudi Arabia’s Vision 2030: This approval aligns with Saudi Arabia's ambitious industrial development and logistics programme, which is part of its Vision 2030 reform plan. The plan aims to position the kingdom as a major global player in the energy, mining, logistics, and industry sectors.
Background: In March, the LME announced plans to add Jeddah as a new delivery point, pending consultation about a technical change to the LME warehouse framework.
Policy Amendments: The LME also amended a clause in its policy on the approval of locations as delivery points related to warehouse insolvency following a consultation.
Ownership: The LME is owned by Hong Kong Exchanges and Clearing.
The approval of Jeddah as a delivery point underscores the growing strategic importance of Saudi Arabia in the global metals market, supporting the kingdom's broader economic and industrial ambitions.
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