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New Diplomacy on the Horizon: U.S. and Russia Push Ahead Without Ukraine

  In a bold shift from previous diplomatic efforts, top U.S. and Russian officials have agreed to advance negotiations aimed at ending the war in Ukraine—even as Ukrainian representatives remain notably absent. High-level talks held in Riyadh, Saudi Arabia, saw U.S. Secretary of State Marco Rubio and Russian Foreign Minister Sergey Lavrov discussing the framework for future peace negotiations and steps toward restoring bilateral relations. The Trump administration’s approach, which prioritizes direct engagement with Moscow, marks a departure from longstanding principles that insisted on “nothing about Ukraine without Ukraine.” Critics in Kyiv have voiced strong opposition. Ukrainian President Volodymyr Zelenskyy warned that any agreement reached without Ukraine’s participation would be unacceptable and would undermine the nation’s sovereignty. European leaders echoed these concerns, with several officials labeling the move as a dangerous precedent that could lead to a “dirty deal...

No Change in Sight: Bank of Canada to Keep Interest Rate at 5% Amid Economic Slowdown

                   

                                   


The Bank of Canada is expected to keep its key interest rate unchanged at 5% when it announces its decision on Wednesday, according to analysts. The central bank has not changed its policy rate since October 2018, when it raised it by a quarter of a percentage point to its current level.

The bank faces a challenging economic environment, as Canada's growth has slowed down in recent quarters due to trade tensions, weak business investment, and lower consumer spending. The latest data showed that the economy contracted by 0.1% in October, the first monthly decline since February.

The bank has acknowledged that the economy is facing "persistent headwinds" and that the outlook is "sluggish". However, it has also expressed confidence that the economy will gradually recover in 2024, as global trade uncertainty dissipates and domestic demand picks up.

The bank has also signaled that it is not in a hurry to cut rates, as it is concerned about the potential impact of lower borrowing costs on household debt and financial stability. Canada's household debt-to-income ratio stands at a record high of 177%, and the bank has warned that lower rates could encourage more borrowing and increase financial vulnerabilities.

Therefore, most analysts expect the bank to maintain a wait-and-see approach and keep its rate steady until there is clear evidence of a sustained improvement or deterioration in the economic outlook. Some analysts, however, believe that the bank may have to cut rates later this year if the economy continues to underperform or if external risks escalate.



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