The monetary authority has explained that it plans to continue raising rates after this large increase – the highest so far – because “inflation remains too high and is likely to remain above target for an extended period”.
In the long-run, however, investors will probably have to cope with elevated risk of accelerating decoupling and even potential direct confrontation between China and the US.
Is the world becoming more insular and multipolar as economies cope with post-pandemic supply chain disruptions, inflationary shortages, China’s zero-Covid strategy and war in Ukraine?
Headwinds are intensifying against the country’s economy, casting doubt on whether the current mix of macroeconomic and public health policies can deliver the growth targeted.
The EU has overturned decades of defence and energy policies to respond with unprecedented sanctions. The invasion will drive Russia into recession, undermining its prospects in the short and long term.