The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
from Expert Zone:
(Any opinions expressed here are those of the author and not necessarily those of Thomson Reuters).
The Central Bank of Russia was successful for about two hours. Its overnight decision to hike the main interest rate from 10.5 percent to 17 percent initially shocked markets enough to arrest the rouble’s fall after the currency sank almost 12 percent on Dec. 15. But the Russian currency quickly resumed its slide, smashing record lows – as if the central bank hadn’t moved at all. That leaves policymakers with few sensible short-term options. Further out, only an end to the Ukrainian stand-off and related Western sanctions or sharply higher oil prices could soothe markets. Neither is likely to happen soon.
from The Great Debate:
It’s something of a tradition in journalism to gaze into the crystal ball and give readers a view of what we believe will come with the New Year. Below are my 10 predictions for 2015.
from Anatole Kaletsky:
The 40 percent plunge in oil prices since July, when Brent crude peaked at $115 a barrel, is almost certainly good news for the world economy; but it is surely a crippling blow for oil producers. Oil prices below $70 certainly spell trouble for U.S. and Canadian shale and tar-sand producers and also for oil-exporting countries such as Venezuela, Nigeria, Mexico and Russia that depend on inflated oil revenues to finance government spending or pay foreign debts. On the other hand, the implications of lower oil prices for the biggest U.S. and European oil companies are more ambiguous and could even be positive.