Russia Raises Rates to Curb Inflation Ahead of Parliamentary Election
Russia’s central bank raised interest rates for the fifth time in a row on Friday, key interest rate by 25 basis points to 6.75 per cent
This indicates it might hike further to curb surging prices and food costs that are pushing up inflation in many emerging markets, addressing what has become a major issue ahead of parliamentary elections later this month that are marked by soaring food prices and slumping real incomes
Overall a worrying outlook, as rising prices are becoming an increasing concern across many emerging markets
ECB to Slow Bond-Buying as Europe’s Economy Improves
After a two-day meeting of its governing council, the ECB has decided to move to a moderately lower pace in its €1.85tn pandemic emergency purchase programme (PEPP) from the €80bn-a-month level it has run at since March
This shows how the decision to slow the PEPP, the ECB’s flagship policy response to the pandemic, follows a strong rebound in eurozone growth and inflation, as rising coronavirus vaccinations have helped to end lockdowns and boosted business and household activity
Overall, an improving outlook, as European Central Bank president Christine Lagarde reassured bond investors even as the ECB said it would buy fewer bonds in a sign of confidence in the eurozone’s economic recovery
Brussels to Issue ‘COVID Green Bonds’ as Part of Pandemic Recovery Effort
Brussels is to issue its first Covid-19 green bond as part of its efforts to become the world’s biggest issuer of sustainable debt
This shows how the European Commission plans to tap into debt markets for a sale of green bonds in October, raising funds for environmentally friendly reforms and investment in EU member states, as part of the union’s pandemic recovery effort
Overall, a promising development, as the global green bonds market has boomed in recent months, with total issuance in the asset class topping $200bn this year