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 goods trade deficit widened sharply in September, growing by 14.9% to reach US$108.2 billion (RM472.9 billion), according to the Commerce Department's Bureau of Economic Analysis. The increase was driven by a surge in imports, while exports declined, highlighting continued pressure on economic growth.
This marks the third consecutive quarter where trade has negatively impacted gross domestic product (GDP). The widening trade gap suggests that the US trade balance remains a drag on the economy.
The government's advance GDP estimate for the July-September quarter is set to be released on Wednesday, with economists predicting a 3.0% annualized growth rate, matching the pace seen in the second quarter.
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