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Russia's Conditions for US Talks on Ukraine: A Path to Diplomacy?

  Russia has recently outlined its demands for potential negotiations with the United States regarding the ongoing conflict in Ukraine. According to sources, Moscow has presented a list of conditions aimed at ending the war and resetting relations with Washington. These demands include barring Ukraine from NATO membership, prohibiting the deployment of foreign troops in Ukraine, and recognizing Russia's claims over Crimea and four Ukrainian provinces. The discussions between Russian and American officials reportedly took place over the past three weeks, both in-person and virtually. While the exact details of the demands remain unclear, they are said to align with Russia's long-standing positions on NATO's eastward expansion and the "root causes" of the conflict. Ukrainian President Volodymyr Zelenskyy has expressed openness to a 30-day ceasefire as a preliminary step toward broader peace talks. However, concerns persist among U.S. officials and experts that Russi...
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Bank of Canada warns of prolonged high interest rates



Canadians should be prepared for a prolonged period of high interest rates, according to the Bank of Canada's senior deputy governor. 

In a speech delivered on Thursday, Carolyn Wilkins said that the central bank's policy rate, which influences the cost of borrowing for consumers and businesses, will likely remain above its pre-pandemic level for some time. She cited several factors that could keep inflationary pressures elevated, such as supply chain disruptions, labour shortages, strong consumer demand and fiscal stimulus. Wilkins also said that the Bank of Canada is closely monitoring the risks of financial imbalances, such as high household debt and housing market froth, that could arise from keeping rates too low for too long.

 She stressed that the central bank's main goal is to achieve its 2% inflation target over the medium term, and that it will adjust its policy rate as needed to fulfill this mandate. 

Her comments echo those of other Bank of Canada officials who have warned Canadians to plan for a period where rates may be higher. The bank has raised interest rates 10 times over the past year-and-a-half to fight runaway inflation, bringing the benchmark policy rate to 5%, the highest level since 2001. This has major implications for homeowners with mortgages who are facing large payment shocks over the next few years when their mortgages reset .

So far, mortgage delinquencies remain below pre-pandemic norms, but delinquency rates on other types of consumer debt have increased. Wilkins also pointed to tectonic shifts in the global economy, such as a retirement wave among baby boomers and changing patterns of global trade and investment, that could keep interest rates higher for longer. She also mentioned geopolitical risks, such as an escalation of the war in Ukraine or the war in Israel and Gaza, that could push rates higher globally if they affect energy prices and supply chains in ways that could have a lasting impact on inflation. 

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