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 (Aug 10): The FBM KLCI closed 0.17 point lower at 1,777.77 points as the US-North Korea geopolitical tension and speculation on Malaysia's 14th General Election's (GE14) timing turned investors cautious.
The cautious sentiment was apparent across Bursa Malaysia where decliners significantly outpaced gainers at 585 to 248 respectively. The bourse saw a volume of 1.35 billion shares valued at RM1.5 billion.
“Investors could also be waiting for the release of upcoming financial results before making decisions,” Hong Leong Investment Bank Bhd retail research head Loui Low said.
He said the trade volume across Bursa Malaysia at 1.35 billion shares today was "quite thin" as Malaysia's GE14 theme took centre stage in local markets. The nation held its GE13 on May 5, 2013.
Today, cautious sentiment was reflected across Asia as stocks fell on the US-North Korea geopolitical tension. Japan's Nikkei 225 dropped 0.05%, South Korea's Kospi fell 0.38% while Hong Kong’s Hang Seng was down 1.13%.
Reuters reported that Asian stocks turned lower on Thursday as investors fretted about the simmering tensions between the US and North Korea, sending Seoul shares skidding to two-month lows even as the previous day's rush into safe-haven assets appeared to slow.
Source: The Edge
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