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...
It's a good day for FBM KLCI, as it closed higher for its third consecutive day, after the US revised higher its third quarter economic growth. Malaysian shares rose in line with most Asian markets.
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| Positive for FBM KLCI |
At 5pm today, KLCI rose 3.61 points to close at 1842.17. (it's 0.2% increase), thanks to gain from stocks such as Maybank, Tenaga as well as British American Tobacco (BAT). The KLCI is supported by the regional positive sentiment especially after Reuters reported the US government upgraded its reading on third quarter gross domestic product (GDP) growth to 3.9 percent on Tuesday, from 3.5 percent reported last month.
BAT is the top gainer while Dutch Lady Milk Industries Bhd is a top loser.
In the region, the markets were mostly up, while Hong Kong’s Hang Seng rose 1.12%, while South Korea’s Kospi gained 0.03%.
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