Latest news with #CentralBankofRussia
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First Post
a day ago
- Business
- First Post
Russia's war economy finally showing signs of slowdown: Good news or bad for Ukraine peace?
Russia's economic outlook is growing increasingly uncertain as it grapples with manufacturing declines and inflationary pressures, with the economy minister warning that the country was 'on the brink' of a recession read more Russia's economy, long propped up by heavy military spending, is starting to show cracks under the weight of sanctions and inflation. While wartime government expenditure has kept economic activity afloat, recent data suggests that without this crutch, the country could slide into stagnation. The nation's economic outlook is growing increasingly uncertain as it grapples with manufacturing declines and inflationary pressures. Signs of slowdown in Russia's economy In June, Russia's manufacturing sector took a sharp hit. The Purchasing Managers' Index (PMI), a key gauge of manufacturing health, plummeted to 47.5, marking the steepest contraction since March 2022, according to S&P Global. This was a stark reversal from May's PMI of 50.2, when manufacturing had shown modest growth. STORY CONTINUES BELOW THIS AD The downturn stemmed from a drop in new orders, driven by weak client demand and a strong ruble that has made Russian exports pricier on the global market. As a result, factories were forced to cut jobs at the fastest rate since April 2022 and scale back purchasing activity at a pace not seen in over three years. The broader economy is also showing signs of strain. Russia's economy is overheating, with rising wages and a shrinking workforce fueling inflation that has proven difficult to tame, even with high borrowing costs. In June, Economy Minister Maxim Reshetnikov warned that the country was 'on the brink' of a recession, a sobering acknowledgement of the challenges ahead. Inflation, which spiked to around 10 per cent earlier in 2025, has eased somewhat but remains above the Central Bank's target. In response, the Central Bank of Russia made a notable policy shift, cutting interest rates twice in 2025—first by 100 basis points in June to 20 per cent, and then by 200 basis points in July, bringing the rate to 18 per cent. These cuts reflect growing concerns about an economic cooldown and a need to stimulate lending to bolster activity. STORY CONTINUES BELOW THIS AD Business sentiment is souring as inflationary pressures squeeze consumers and the government signals tougher times ahead. Spending cuts are on the horizon, though slashing defence budgets seems unlikely given the military-industrial complex's role as the economy's backbone. This sector, heavily reliant on opaque financing and state support, faces its own risks. Reduced arms exports, sanctions blocking access to high-tech components, and a growing dependence on costly Chinese substitutes are all taking a toll. Beneath the surface, structural vulnerabilities are becoming harder to ignore. Adding to these pressures is external scrutiny, with figures like US President Donald Trump pushing for peace and threatening even more sanctions, which could further complicate Russia's economic and geopolitical calculations. As Russia stands at this crossroads, the question looms: Will President Vladimir Putin accept a slowdown and focus on stabilising the economy, or will he double down on war efforts to maintain momentum?
See - Sada Elbalad
5 days ago
- Business
- See - Sada Elbalad
Russia's Central Bank Slashes Interest Rate by 200 Basis Points
Taarek Refaat The Central Bank of Russia cut its key interest rate by a dramatic 200 basis points on Friday, bringing it down to 18% in the country's largest rate reduction since May 2022. The move comes as part of an effort to stimulate lending and revive a slowing economy, amid early signs that inflation may be cooling. The decision aligns with expectations from a Reuters poll of 27 economists and reflects mounting pressure from Russian business leaders and some government officials, who argue that high borrowing costs are stifling economic activity. Friday's cut follows a series of aggressive hikes that began in July 2023, when the central bank raised rates in response to surging military spending and overheating in various sectors of the economy. Those measures, while aimed at stabilizing prices, have pushed Russia dangerously close to recession, according to comments made by the Russian Minister of Economy last month. This latest reduction also marks the most significant monetary policy easing since the 300-point rate cut in May 2022, which came in the wake of Western sanctions following the launch of Russia's military campaign in Ukraine. Alongside the rate cut, the central bank revised its inflation forecast for 2025, lowering it to a range of 6% to 7%, down from the previous projection of 7% to 8%. Officials cited faster-than-expected declines in inflationary pressure as a key factor in the policy shift. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Sports Get to Know 2025 WWE Evolution Results News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" News Flights suspended at Port Sudan Airport after Drone Attacks
Time Business News
11-07-2025
- Business
- Time Business News
Rubles to Remain Strong in Late July Amid Geopolitical Shifts and Central Bank Policy
An expert predicts the Russian ruble will maintain its strength in the second half of July 2025, influenced by high interest rates, low import demand, and expectations of improved geopolitical relations. The Central Bank of Russia is anticipated to cut the key rate to 18% on July 25th. Expert Forecasts Ruble's Trajectory for Second Half of July While August often marks a turning point for the currency market, 2025 may prove an exception due to ongoing geopolitical factors, with July still exhibiting trends from the preceding period. Mikhail Vasiliev, chief analyst at Sovcombank, shared his insights with Finance Mail regarding the ruble's potential performance in the latter half of July. 'We anticipate that the ruble will remain strong in the second half of July, trading close to its current values, though much will hinge on geopolitical developments,' he stated. Vasiliev explained that several factors continue to bolster the Russian currency: elevated ruble interest rates, suppressed demand for foreign currency driven by low import volumes and capital outflow, the expectation of improved relations between Russia and the U.S., and daily yuan sales from reserves as part of budget operations, totaling 9.8 billion rubles. Vasiliev elaborated that the high key rate enhances the attractiveness of ruble savings, with deposits yielding approximately 18-19% annually. Concurrently, this high rate dampens consumer and investment demand, subsequently reducing the need for imports and, by extension, foreign currency. He also noted that exporters are converting a larger portion of their foreign currency earnings due to the high key rate and optimism surrounding geopolitical improvements. A potential negative factor for the ruble is the seasonal increase in demand for foreign currency as people travel abroad for summer vacations. However, the ruble is expected to receive support at the end of July from the tax period, which will see exporters more actively selling foreign currency to settle their budgetary obligations by July 28th. Furthermore, Vasiliev added that the currency market will remain sensitive to updates on Ukrainian conflict resolution talks, assessing the risks of new anti-Russian sanctions, and monitoring the broader geopolitical landscape. He highlighted that despite a 6% decline in Brent oil prices, the ruble has strengthened by 23% against the dollar since the start of the year until mid-July. Oil prices are likely to stay within the $66-73 per barrel range in the second half of July, supported by tensions in the Middle East. 'We also anticipate a reduction in the key rate at the end of July. We expect the Bank of Russia to lower the key rate by 200 basis points to 18% at its upcoming meeting on July 25th,' he revealed. According to the expert, a strong ruble primarily benefits importers and consumers, enabling them to purchase foreign goods at lower prices. A robust ruble also promises a quicker deceleration of inflation and a swifter reduction in the key rate. Conversely, an overly strong ruble is disadvantageous for both the budget and exporters. 'Overall, we believe the ruble can maintain its strength as long as a stringent monetary policy persists, expectations of geopolitical improvements remain, and Russian authorities refrain from implementing measures to weaken the ruble,' Vasiliev concluded. In a baseline scenario, assuming no significant geopolitical changes, he predicted that in the second half of July, the ruble would trade within the following ranges: 10.6-11.3 per yuan, 76-81 per dollar, and 89-95 per euro. … */ .news-highlight { border-left: 6px solid #f97316; /* Orange-500 equivalent */ background-color: #fff7ed; /* Orange-50 equivalent */ padding: 1.25rem; /* p-5 */ margin-bottom: 1.5rem; /* mb-6 */ border-radius: 0.5rem; /* rounded-lg */ box-shadow: 0 4px 6px -1px rgba(0, 0, 0, 0.1), 0 2px 4px -1px rgba(0, 0, 0, 0.06); /* shadow-md */ }" id="—–Expert:-Ruble-to-Remain-Strong-in-Late-July-2025-–-Key-Rate-Cut-Expected- This information is for informational purposes only and does not constitute individual investment advice. TIME BUSINESS NEWS
See - Sada Elbalad
07-06-2025
- Business
- See - Sada Elbalad
Russia Cuts Interest Rates by 100 Basis-point for First Time since 2022
Taarek Refaat The Central Bank of Russia cut interest rates to 20%, the first cut since September 2022, amid signs of easing inflationary pressures. The Bank of Russia cut interest rates by 100 basis points, after having held them steady at 21% since last October, the highest level since the adoption of the new benchmark interest rate in 2013. Inflation in April reached 6.2%, a marked slowdown from an average of 8.2% in the first quarter of 2025, according to Central Bank data. The Bank of Russia confirmed in its statement that although domestic demand still exceeds supply, the Russian economy is gradually returning to a balanced growth path. The Bank added that monetary policy will remain tight for a "prolonged period" until inflation returns to its 4% target. The Russian-Ukrainian war, which erupted in February 2022, has led to severe economic pressures, most notably the weakness of the Russian ruble and rising import prices. Since then, Moscow has reoriented its economy to meet the challenges of war and Western sanctions. There were hopes at the beginning of the year that US President Donald Trump could broker a ceasefire or even end the war, but fighting continues on the ground. Despite everything, the rouble is currently the best-performing currency in the world this year, according to Bank of America, due to a combination of capital controls, tighter monetary policy, and a weaker US dollar. It's worth noting that with the interest rate cut announcement, the US dollar rose 2.72% against the rouble on Friday. (USD/Rouble = 78.56) read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Sports Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks News Shell Unveils Cost-Cutting, LNG Growth Plan
Jordan News
31-05-2025
- Business
- Jordan News
Russia's International Reserves Rise to $678.5 Billion - Jordan News
Russia's International Reserves Rise to $678.5 Billion The Central Bank of Russia announced on Friday that the country's international reserves increased by 1.6% in May, reaching $678.5 billion, a gain of $11 billion over the month. اضافة اعلان Key Drivers of Growth: The rise was attributed to a positive revaluation of foreign assets, reflecting favorable market conditions. Despite ongoing geopolitical challenges and financial sector pressures, the data signals a degree of economic stability in Russia. Russia's international reserves include foreign currencies, Special Drawing Rights (SDRs), reserve positions in the IMF, and gold holdings. The latest increase reinforces the country's efforts to maintain macroeconomic stability amid Western sanctions and global economic shifts.
