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...
Thailand's Social Security Fund (SSF), worth $77 billion, plans to invest $11.6 billion in global private assets as part of a significant strategic overhaul aimed at improving its historically low returns. The fund, which supports healthcare, unemployment benefits, and pensions for 25 million workers, has struggled with average returns of less than 3% over the past decade, far below its potential.
Petch Vergara, a member of the SSF’s investment board and a former Goldman Sachs executive, emphasized that the fund's reliance on low-risk domestic investments is unsustainable. If the current strategy continues, the fund risks bankruptcy by 2051.
The move comes as Thailand’s population continues to age rapidly, with one-fifth of its 66 million people now over 60. The SSF’s new board, composed of elected members for the first time, approved an investment framework that will reduce the weighting of low-risk assets from 70% to 60% and increase higher-risk investments from 30% to 40% by 2027.
Of the higher-risk investments, 15% will be allocated to global private assets such as private equity, credit, and hedge funds. The fund aims to generate higher long-term returns and improve the fund’s sustainability in light of Thailand’s growing elderly population and rising pension demands.
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