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Showing posts from October, 2009

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Russia Holds Key Rate at 21% Amid Surging Inflation

The Bank of Russia unexpectedly maintained its key interest rate at a record-high  21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to  8.9%  in November, well above the central bank’s  4% target , with inflation expectations reaching  13.9%  in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s  200-basis point hike  as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...

What does the 1Malaysia 2010 Budget has in store for you? - Part 1

The Malaysia Prime Minister Datuk Seri Najib Tun Razak has tabled the 2010 Budget last Friday evening with the theme "1Malaysia, Together We Prosper" totalling about RM191.5B. The summary of the 2010 1Malaysia Budget is here . So, what does it really have in store for most us? From the summary of the 2010 Malaysia Budget , it looks like there are few points for us, me at least. To ensure that fuel subsidies only benefit targeted groups, Govt will implement a fuel subsidy management system in early 2010, which will utilise the MyKad. I'm not sure how the government going to implement this, but if government is to implement this, why not give the allocated budget for fuel subsidy to everyone fair and square. If they plan to allocate RM1B for the fuel subsidy, might as well, divide the RM1B to the number of citizens in Malaysia so that everyone is getting the same amount fair and square. By implementing the fuel subsidy using MyKad, the poor will be badly affected. With thi...

Malaysia Budget 2010: 1Malaysia, Together We Prosper

Below are the summary in the Budget 2010 which was tabled by the Malaysia Prime Minister, Datuk Seri Mohd Najib Tun Razak:- * Government to make it easier for skilled/qualified people to get permanent residence status. Visa to be granted for family within 14 days. * CSR Fund of RM100mil to be set to carry out social programmes. * Tax breaks for registration of patents and copyrights. * Big scale factory outlets to be set up to boost tourism besides having major events like KL Grand Prix Fest, National Water Festival, Malaysia International Golf Exhibition and Rain Forest Eco-Challenges * Taxpayers will get tax relief on broadband subscription fee of up to RM500 from 2010 to 2012. Civil servants can apply for computer loans up to a maximum of RM5,000 from the govt once in every 5 years. * RM6bil for agriculture sector for paddy fields irrigation, fish production, fruit farming, livestock farming infrastructure, training * RM2bil subsidy for farmers and fishermen including subsidies fo...

Turmoil in the financial world is finally settling albeit slowly

Is the financial world finally recuperating? Although there are statistics and incidents in shreds and patches that indicate that the financial world is settling down but a particular change has to last for a considerable time period before it establishes itself as a trend. What gave rise to the turmoil in the financial markets? The factors that are responsible for creating upheavals in the economy didn’t impact the economy in one day; it started seeping into the economy few years ago. Since the economy wasn’t strong enough to withstand the turmoil, it gave in. However, the economy was seemingly healthy. But this wasn’t the true picture. It started with subprime lending activities that assumed an uncontrollable proportion due to manipulation and irregularities. Mortgage brokers and lenders had scrupulously inflated income levels and manipulated appraisals. They approved mortgage loans of borrowers that were not eligible to get a mortgage. As more and more borrowers started defaulting ...