India: RBI Governor Raghuram Rajan says inflation to be curbed over time, not abruptly
Amid concerns about the evolution of inflation in the country-which is the highest across the region- RBI Governor Raghuram Rajan stated yesterday that, “rather than administer shock therapy to a weak economy, the RBI prefers to disinflate over time rather than abruptly,” as Blooomberg reported.
Thailand: Thai PM faces negligence charges as protest leader broaches talks
Reuters reports that the Thai anti-corruption agency weighed negligence charges on the Prime Minister Yingluck Shinawatra on 27 February. The charges are related to the controversial rice subsidy scheme. If found guilty, Shinawatra will have to be removed from the office and face a five year ban from politics.
Brazil: Brazil slows interest rate hikes to shield weak economy
The Brazilian central bank’s monetary policy committee voted unanimously to hike its SELIC rate by 25 basis points to 10.75%. The decision to push borrowing rates up came amid ongoing concerns over inflationary pressures, but breaks a streak of six consecutive 50-point hikes. The bank did not rule out the possibility of another hike at the next meeting in April, although analysts have interpreted the decision to increase the benchmark rate by 25 basis points rather than 50 basis points as a sign that the tightening cycle may be near its end.
China: Recent RMB Falls Shouldn’t Be Over-Read: China Currency Regulator
Caijing reports that the renminbi continued to weaken this week, hitting a new low since 31 July 2013 and triggering speculations over the PBOC guidance. Against this backdrop, the SAFE downplayed the possibilities of large-scale capital outflows in the future as it remained upbeat about China’s economic prospects.
Ukraine: Ukraine warns Russia against ‘aggression’ in Crimea
As the BBC News reports, the warning comes after armed men seized Crimea’s regional parliament and the government headquarters of the Russian-majority region. Ukrainian interim President Oleksandr Turchynov also claimed that, “we are committed to having Ukraine as one united country. We will punish anyone for separatism in Ukraine with all legal and constitutional means.”