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...
German unemployment increased by 17,000 in September, exceeding economists' expectations of 13,500, according to a Bloomberg poll. Despite this rise, the unemployment rate remained steady at 6%. The increase signals that the economic slowdown is starting to affect the labor market more significantly.
While German companies have been hesitant to cut staff due to concerns about a shortage of skilled workers, there are now growing signs of a cooling labor market. Employment growth has slowed, and the number of job vacancies fell by about 15% in the second quarter compared to the previous three months. Recent business surveys from S&P Global and the Ifo institute have also shown an increasing willingness among firms to reduce staff.
According to Andrea Nahles, head of the Federal Labour Agency, the usual fall revival in the labor market is progressing more slowly than expected.
Comments
Post a Comment