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 UK is preparing to adopt the faster T+1 trading regime—a one-day settlement cycle—by the final quarter of 2027, following in the footsteps of the US, according to Andrew Douglas, chair of the government-appointed team advising on the transition. This shift aims to streamline trading processes and reduce risks, but it may take place ahead of the European Union (EU), potentially complicating cross-border financial operations.
A new report lays out two scenarios: one where both the UK and EU switch to T+1 simultaneously, and another where the UK moves independently. While officials in Brussels have hinted at a similar timeline, with a potential shift by the end of 2027, EU markets are more fragmented, making coordination challenging.
Failure to align could increase trading frictions and operational costs due to mismatched processes across the two regions. Industry groups, including the Association for Financial Markets in Europe, have urged both regions to harmonize their transitions.
The move to T+1 will require upgrading technology, adjusting operational processes, and potentially increasing staffing. The US, Canada, and Mexico successfully implemented T+1 earlier this year, providing a model for smooth execution.
If the transitions don’t align, the report suggests keeping certain instruments, like ETFs and Eurobonds, on a slower settlement cycle initially.
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