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Showing posts from August, 2014

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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...

Our Investors Are Not Very Smart

I have read an interesting article regarding Malaysian investors are not very smart. There are other similar kind of surveys and articles that seem to show that Malaysians especially the Gen Y-ers are shying away from equities investment and prefer to hold cash than any other investment assets. Below are the whole article taken from Free Malaysia Today - Our Investors Are Not Very Smart, by Scott Ng. Only 2% of Malaysian investors are able to answer survey questions. PETALING JAYA: Malaysian investors are not as smart as they think they are. A survey has painted a dismal picture, saying our investors lack financial literacy. The survey found that out of all the Malaysian participants in the survey, only 2% were capable of answering the five questions posed to them in the survey. This is in comparison with Singapore’s 20% and an 11% overall for all participants. The latest Manulife Investor Sentiment Index in Asia (Manulife ISI) is based on 3,500 interviews across seven As...

How to save for your home down payment?

Have you ever wonder if you could ever got yourself a place you could call your own...a place call home? If you have this dream of owning a home and finding it difficult to believe you can achieve it, you're absolutely normal, given the current economy in our country. But like many, it's possible to save for your home downpayment. Some of you may opt to withdraw from your Employees Provident Fund (EPF) account number 2 to fund your house downpayment, but EPF is your retirement savings and you should really consider the possibility of it not being enough. For example, a property selling at RM400,000 with 90% loan comes with a down payment of RM40,000 (10%) and an additional of about RM20,000 in fees and charges. This would approximately come up to an initial payment of RM60,000 in cash. It may seem overwhelming to save up that much, but by drawing a strict and realistic savings plan for this purpose , you will be able to afford your first home in no time. ...