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 fell 13.11 points |
US crude futures were trading at US$31.25 per barrel at 0758 GMT, down 1.95% from their last settlement. International Brent futures were down around 1% at US$32.90 a barrel. Both dropped more than 5% in intra-day trading the previous day.
The consequence of the fall in oil prices are obvious given what we have seen in the past few months...the market fall as well.
FBM KLCI dropped by 0.8% or 13.11 points to close at 1,664.17.
Across Asia, Japan's Nikkei 225 lost 0.85% while Hong Kong's Hang Seng shed 1.15%.
Bursa Malaysia saw 1.53 billion shares valued at RM1.51 billion traded. Decliners beat gainers at 601 versus 229.
The top gainers included Kuala Lumpur Kepong Bhd and PPB Group Bhd.
The leading decliner was Dutch Lady Milk Industries Bhd.
The most-active stocks included APFT Bhd and KNM Group Bhd.
Among decliners, Kossan Rubber Industries Bhd fell to an intraday low of RM6.69 before closing unchanged at RM6.75.
Today, the ringgit weakened to 4.224 against the US dollar, tracking lower crude oil prices.
The ringgit tracks prices of crude oil as the commodity forms a crucial portion of the Malaysian economy and government revenue.
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