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 US-China tech war is anticipated to escalate no matter the outcome of the November 5 US presidential election, with Republican Donald Trump and Democrat Kamala Harris offering differing approaches but a shared commitment to curbing China’s technological and military advancements.
Both candidates are expected to implement new restrictions on Chinese imports of tech products like chips, smart cars, and AI technologies, according to former officials and experts. Harris has pledged to ensure "America, not China, wins the competition for the 21st century", while Trump continues to emphasize tariffs as a key solution.
In either administration, the goal is clear: to slow China’s technological progress, particularly in areas that could enhance its military capabilities. The Biden administration has already laid the groundwork with rules to keep Chinese-made connected cars off US streets, and Harris is likely to continue this targeted, allied-based strategy.
A second Trump term, on the other hand, is expected to be more aggressive and unilateral, potentially expanding export controls and sanctions on Chinese companies like Huawei and restricting imports of products containing Chinese chips. Trump may also impose steeper tariffs, including up to 60% on Chinese imports.
With China’s retaliation measures—including restrictions on rare earths and key materials like germanium and gallium—already in place, the tech conflict is poised to become even more complex. Wilbur Ross, Trump’s former commerce secretary, emphasized the need for the US to remain strategic, given its ongoing dependence on Chinese rare earths for critical industries.
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