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...
Alibaba Group Holding Ltd, JD.com Inc, and Meituan saw their best trading days in years following the Chinese government’s announcement of wide-ranging stimulus measures aimed at boosting the struggling domestic economy. Meituan and JD.com surged over 20% in Hong Kong trading on Thursday and Friday, marking their best two-day performance since 2022, while Alibaba rose as much as 15%.
The stimulus package includes support for the property sector, cash handouts for residents in hardship, and increased social security benefits for unemployed graduates. These measures helped ease concerns over China’s debt-ridden property market and high youth unemployment, which in turn bolstered consumer tech firms.
Cash-rich companies like Alibaba, based in Hangzhou, are leading share repurchases this year, boosting investor confidence. Alibaba’s shareholder yield at the start of this month was over 8%, more than double that of any company in the Magnificent Seven in the US. These buyback efforts, combined with Beijing’s new stimulus policies, are helping to reignite interest in China’s tech sector.
With additional fiscal and monetary measures on the horizon, China’s policymakers are signaling a commitment to reviving economic growth, stabilizing employment, and enhancing social stability. The latest moves are expected to further stabilize the job market and lift consumption demand.
Comments
Post a Comment