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...
Warren Buffett's Berkshire Hathaway Inc. has continued to reduce its stake in Bank of America Corp (BofA), selling an additional $982 million worth of shares. This latest round of sales, disclosed in a regulatory filing, occurred on August 23, 26, and 27, marking a significant pullback from the investment that has been a cornerstone of Berkshire's portfolio.
Key Takeaways:
Significant Reduction in BofA Stake: Since mid-July, Berkshire Hathaway has reduced its stake in Bank of America by nearly 13%, generating approximately $5.4 billion in total proceeds. This marks one of Buffett's most substantial reductions in a major investment in recent years.
Impact on BofA Stock: Prior to the selling spree, BofA's shares had risen 31% this year. However, the stock has since declined by 10%, closing at $39.67, as investors react to Buffett's sell-off.
Berkshire’s Continued Holding: Despite the sales, Berkshire Hathaway remains the largest shareholder of Bank of America, holding 903.8 million shares valued at $35.9 billion. The ongoing reduction, however, indicates a shift in Buffett's confidence or strategy regarding the bank's future performance.
Buffett has not publicly disclosed the reasons behind the sales, leaving market observers to speculate on the motivations for reducing what has been a highly profitable and long-standing investment in one of the largest U.S. banks.
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