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...
2015 has been a rather forgettable year for Malaysia. The FBM KLCI closed at 1,761.25 points on 31st December 2014 but was last seen at 1,663.51 points on 23rd December 2015 before the market was closed for public holidays on 24th and 25th December....it's a drop of about 5.5%. That is before the Ringgit is being taken into consideration. The RM was one of the worst performing currencies in 2015. Chart taken from marketwatch.com How 2016 will look like for Malaysia is the BIG QUESTION mark as we head into 2016 within a week's time. Emerging economies slowdown has been a real concern to global economy including Malaysia, especially with China. The slowdown is exerting downward pressure on commodity prices. While we are expected to see an improvement in the US economy and a moderate recovery in the Eurozone, 2016 is also the year where China is expected to see further decline in their growth. This has hurt the Asian economies as weaker global trade and softer dom...