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 ongoing strike at Boeing's Seattle factory has led to delays in 737 Max deliveries across Asia, a region with one of the largest order backlogs for the aircraft. The strike, involving around 33,000 Boeing employees represented by the International Association of Machinists and Aerospace Workers, has stretched for almost two weeks, raising concerns over the reliability of deliveries to Asian carriers.
Boeing is expected to deliver 981 Max jets to Asian airlines, including major carriers like Air India Ltd and Indonesia’s Lion Air, by 2030. This represents close to one-third of all scheduled deliveries globally. However, with production disrupted, airlines across Asia, such as Korean Air, Vietjet Aviation, and Japan Airlines, are reporting delays or expressing concerns about further postponements.
The situation is worsened by the pandemic's lingering supply chain fractures, which have already limited aircraft availability, making it challenging for Asian carriers to meet surging demand for air travel. Singapore Airlines and other carriers are actively working with Boeing to adjust their delivery schedules amidst the factory shutdown. If the strike continues, it could impact airline capacity in a region recognized as the global growth engine for air travel, potentially leading to higher airfares due to fewer available seats.
Industry experts predict that global plane deliveries will stall through 2024, with full recovery not expected until 2026, as supply chain issues and economic challenges continue to weigh on production.
Boeing, which aims to increase 737 Max production to 38 jets a month by year’s end, has warned that the strike will delay this target. Financial pressures are mounting for the company, which has bypassed union negotiators by taking its 30% wage hike offer directly to workers—a move that has further escalated tensions with the union.
Major airlines in Asia, like Air India and Lion Air, which have the largest number of 737 Max jets due in the next decade, have yet to comment on the impact. Meanwhile, Ryanair CEO Michael O’Leary has already cautioned that up to 10 jet deliveries expected in the first half of 2024 may be pushed to the second half due to the strike.
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