Key Economic and Investment Events on November 23, 2024
On November 23, 2024, significant events in the economic and investment sectors took place in Russia, potentially impacting the market and investors' interests.
1. Macroeconomic Indicators:
- Inflation Exceeds Central Bank Forecasts: As of November 21, leading Russian economists anticipate that inflation in Russia will surpass the Central Bank’s forecast for 2024, increasing the likelihood of another substantial hike in the key rate in December. Consumer prices rose by 0.37% over the past week, bringing the annual figure to 7.4%, which is close to the Central Bank's forecast of 8.0–8.5%. Reuters
2. Legislative Initiatives:
- President Signs Several Laws: President of Russia Vladimir Putin has signed a law halting debts on loans up to 10 million rubles for participants of the special operation if the enforcement proceedings were initiated before December 1, 2024. Laws concerning fines for document forgery for migrants and administrative punishments for the promotion of child-free ideologies have also been approved. Additionally, requirements for qualified investors have been clarified. Profil
3. Financial Markets:
- Income Tax on Deposits: Russians have been reminded of the need to pay income tax on interest from deposits for the first time. This applies to those whose total income from interest exceeds the tax-exempt minimum. Lenta.ru
Impact on Russia:
The expected inflation exceeding the Central Bank's forecasts may lead to a tightening of monetary policy, affecting the cost of credit and the availability of financing for businesses and consumers. The enacted legislative measures are aimed at supporting specific categories of citizens and increasing control in the migration sector, potentially influencing the socio-economic situation in the country. The introduction of a tax on income from deposits may change depositors' behavior and stimulate the search for alternative investment instruments.
What Investors Should Pay Attention To:
Investors should closely monitor the decisions of the Central Bank, especially in light of a potential increase in the key rate. This could affect the cost of borrowed funds, which is important for business and long-term investment plans. It is also essential to consider the impact of new legislative initiatives, such as the income tax on deposits, which may alter depositors' preferences and encourage the search for alternative investment tools.
Sectors less susceptible to sanctions and volatility, such as IT, healthcare, and the domestic consumer market, may represent opportunities for portfolio diversification. Additionally, investors are advised to focus on export-oriented companies that can adapt to the new economic conditions.
This information does not constitute individual investment advice.
