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...
Italian Prime Minister Giorgia Meloni visited China to enhance cooperation and reset trade ties with the world's second-largest economy after Italy's departure from the Belt and Road Initiative.
Meloni, on her first visit to China as prime minister, emphasized Italy's desire to rebalance its economic relationship with Beijing. She highlighted that Italian investment in China is about three times that of Chinese investment in Italy and expressed a goal to remove barriers for Italian products accessing the Chinese market.
Key Takeaways:
- Trade Rebalance: Meloni aims to rebalance trade ties, seeking better access for Italian products in China.
- Strategic Importance: Italy holds strategic importance to China and could act as a moderating voice within the EU regarding tariffs on Chinese electric vehicles (EVs).
- EU Tariffs: EU members, including Italy, will vote in October on imposing tariffs on Chinese EVs.
- Historical Context: Italy was the only G7 nation to join China's Belt and Road Initiative in 2019 but exited last year under US pressure, signaling a continued desire to develop trade ties with China.
- Industrial Cooperation: Discussions included topics such as electric mobility, but no specific talks on Chinese automakers opening factories in Italy.
Meloni also discussed Italy's role in EU-China relations with President Xi Jinping, expressing hopes for more balanced trade relations and emphasizing Italy's unique position within Europe regarding Chinese investments.
Quotes:
- "We clearly want to work to remove obstacles for our products to access the Chinese market," Meloni said.
- "The issue of electric mobility is one of the topics included in our memorandum of industrial cooperation."
Additional Context:
- Italy's exit from the Belt and Road Initiative did not diminish its desire to develop trade relations with China.
- Meloni's visit underscores Italy's strategic role in fostering balanced trade and investment relations with China within the broader context of EU-China relations.
Comments
Post a Comment