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 transformation of Germany's car industry toward electric vehicles (EVs) could result in the loss of 186,000 jobs by 2035, according to a study commissioned by the VDA auto industry association. The report revealed that 46,000 jobs have already been lost between 2019 and 2023, primarily due to the shift to EVs.
The study, conducted by research institute Prognos, points to several factors contributing to the loss of competitiveness in Germany's car industry, including the high cost of electricity, tax rates, and increasing regulatory red tape.
The job losses are further exacerbated by recent developments at Volkswagen, which is threatening to shut down at least three factories, lay off tens of thousands of employees, and reduce operations at its remaining plants, as noted by the company's works council.
The VDA emphasized the need for competitive political and economic conditions in Germany to retain as much added value and employment as possible within the country, while also creating opportunities for new jobs in the evolving industry.
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