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...
KUALA LUMPUR (April 13): The benchmark FBM KLCI index slipped 0.34% today, following weak cues from Wall Street after U.S. President Donald Trump’s comment on the U.S. currency being too strong, which kept the U.S. markets nervous.
At the closing bell, the KLCI closed 5.90 points lower to 1,738.18, with 3.9 billion shares worth RM2.6 billion traded.
Market breadth was negative with only 220 gainers compared with 765 decliners, while 305 counters were unchanged. Malayan United Industries Bhd continued to be the most actively-traded counter. Eita Resources Bhd was the top gainer, while Nestle (M) Bhd was the leading decliner.
Etiqa Insurance & Takaful Head of research Chris Eng said the lackluster performance in the stock market is mainly due to the U.S. stock performance as seen by the S&P 500 index that closed below its 50-day moving average for the first time since Nov 8.
“I think moving forward, the market will take a cue from the U.S. stock market performance,” Eng told theedgemarkets.com.
Reuters reported Japanese stocks slumped to fresh four-month lows on Thursday, as the yen spiked against the U.S. dollar, after Trump said the U.S. dollar was too strong, hitting exporters and financial stocks hard.
Across the region, Japan’s Nikkei 225 fell by 0.68%, while Hong Kong’s Hang Seng closed lower by 0.21%. South Korea’s Kospi however gained by 0.93%.
Closer to home, both Singapore’s STI and Indonesia’s Jakarta Composite Index also fell by 0.65% and 0.49% respectively.
Source: The Edge
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