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...
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| FBM KLCI close slightly higher |
Year-end window dressing by fund managers seem to keep FBM KLCI on a slight gain today, an increase by 5 points, 0.29% higher.
The local market is also boosted by the performance in US trade.
Wall Street closed at historic highs while oil prices recouped just a little of the losses suffered when Saudi Arabia dismissed curbing supply.
Top gainers are mainly consumer sector such as British American Tobacco, Dutch Lady etc.
Across the region, Hong Kong’s Hang Seng declined 0.32% while South Korea’s Kospi was down 0.21%.
Japan markets were closed for a holiday.
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