News Trending War

Russia hikes interest rates to 15% as inflation soars

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The Central Bank of Russia has raised its key interest rate to 15% in an effort to tackle inflation and support the struggling rouble, marking the fourth consecutive increase. The unexpected two-percentage-point hike was prompted by the persistently high global inflation rates, partly triggered by Russia’s military intervention in Ukraine, which has led to a 6% inflation rate in Russia as of September.

The country has been experiencing escalated government spending directed towards its military efforts, contributing to the recent inflationary pressures. With the latest hike, the Bank of Russia has cumulatively raised the rates by 7.5 percentage points since July, aiming to stabilize inflation at the targeted 4% level. The decision for the emergency rate hike in August was prompted by the rouble’s decline, which fell below 100 against the US dollar, necessitating a tighter monetary policy.

The global supply chain disruptions during the pandemic, coupled with the repercussions of Russia’s invasion of Ukraine, have notably impacted food and energy prices, driving the overall inflation up. Additionally, the imposition of Western sanctions on Russia in response to its actions in Ukraine has had adverse effects on the country’s economy, causing a significant depreciation of the rouble. The sanctions have led to constraints on Russia’s trade, with several European countries seeking alternative energy suppliers and implementing measures to limit Russia’s oil export earnings.

Despite the successive rate hikes, there are concerns that Russia may encounter challenges in attracting foreign investment due to the ongoing sanctions. The exclusion of Russia from the Swift international payment system has further added to the economic strain. Nonetheless, the European Commission has affirmed that the sanctions are effective in exerting pressure on Russia.

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Apple to Release iPhone 12 Update in France Addressing Radiation Concerns

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Following concerns about radiation levels, France’s digital minister, Jean-Noel Barrot, has announced that Apple will release a software update for iPhone 12 users in the country.

Sales of the iPhone 12 were temporarily halted in France due to excessive electromagnetic radiation detected by regulators, prompting Apple to address the issue with a specific software update for French users. The update will undergo testing by the radio frequency regulator (ANFR) before the iPhone 12 can be reintroduced to the French market.

Apple maintains that the radiation concerns stem from France’s unique testing protocol and do not pose a safety risk. This development has raised questions about the iPhone 12’s status in other countries. The World Health Organization has previously stated that low-level electromagnetic fields emitted by mobile phones are not harmful to humans.

Apple intends to contest the ANFR’s review, providing lab results to support its compliance with global emissions regulations. However, this issue may have implications for other EU countries, as regulators in Belgium, the Netherlands, and Germany are now investigating similar concerns.

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News Trending War

Threat to Ships in Ukraine Conflict Causes Soaring Wheat Prices

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Wheat prices on the global markets have experienced a sharp rise following Russia’s declaration that it would consider ships heading to Ukrainian ports as potential military targets. This decision came after Moscow withdrew from a UN agreement that guaranteed safe passage for grain shipments through the Black Sea. In recent nights, Russia has launched attacks on Ukraine’s grain facilities in cities like Odesa. The White House has accused Russia of planning to attack civilian ships and then falsely blaming Ukraine for it. As a result of these developments, European stock exchange wheat prices surged by 8.2% to €253.75 per tonne, with corn prices also rising by 5.4%. US wheat futures recorded their highest daily increase since Russia’s invasion of Ukraine in February 2022, jumping 8.5%. President Vladimir Putin has expressed willingness to return to the international grain agreement if certain demands, including the lifting of sanctions on Russian grain and fertiliser sales, are met.

Amid these escalating tensions, Russian air strikes continued in Black Sea coastal cities for three consecutive nights, leading to civilian casualties. The attacks have targeted grain export infrastructure and raised concerns about the safety of shipping routes for essential food supplies. Ukraine’s options for exporting grain by rail are limited, with rail capacity smaller than shipping volumes, and some EU countries in Eastern Europe blocking Ukrainian grain to protect their own farmers.

Analysts have warned that Russia’s threatened escalation could disrupt waterborne grain shipments from the Black Sea, impacting both Russian and Ukrainian exports. Some Ukrainian officials have called on the UK, US, France, and Turkey to provide military convoys and air defenses to protect grain ships heading to Odesa.

The situation has raised concerns about potential impacts on global food security and inflation, particularly in developing countries, leading to social instability, food shortages, and increased migration. Critics accuse Russia of using food supplies as a political tool in its conflict with Ukraine.

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