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 listed unit of China Baowu Steel Group, the world’s largest steel producer, remains profitable even as much of the sector faces financial struggles. Baoshan Iron & Steel Co. reported a 65% drop in third-quarter net income to 1.34 billion yuan ($188 million), yet it continues to outperform the broader industry, which has been hit hard by China's prolonged real estate downturn and sluggish demand.
Despite the sector's challenges, Baoshan noted in its earnings report that it "ranks first in the industry" in profitability. Smaller competitors like Hesteel Co. and Angang Steel Co. are set to release their earnings soon, with the industry as a whole dealing with a potential fourth consecutive year of declining steel consumption.
Amid these challenges, Baowu's outlook is cautiously optimistic. The company anticipates market stabilization and improving demand, driven by recent government stimulus efforts. While domestic demand remains weak, Baowu has relied on exports to offset the downturn, with overseas sales reaching a record high share of its total revenue for the first nine months of the year.
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