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 (Oct 25): The FBM KLCI settled 2.91 points or 0.2% higher, mainly on index-linked Genting Malaysia Bhd share gains.
At 5pm, the KLCI closed at 1,739.05 points after falling to its intraday low at 1,733.67 points. Genting Malaysia shares rose 13 sen to RM5.13 to become Bursa Malaysia's ninth-largest gainer.
Across Bursa Malaysia, 2.46 billion shares worth RM1.89 billion were traded. There were 349 gainers and 433 decliners.
“The (Malaysian) stock market is actually oversold, and (the KLCI) will probably hold at the 1,740-1,750 level for the next few days. There’s no reason for it to fall further,” Malacca Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com.
Looking ahead, Wan said besides Malaysia's Budget 2018 which will be announced this Friday (Oct 27), investor sentiment will be largely dependent on announcements of more infrastructure projects, which in turn will affect Bursa Malaysia construction counters.
Today, investors' interest on Bursa Malaysia construction counters was apparent. The Bursa Malaysia Construction Index rose 5.87 points or 1.83% to close at 326.98 points.
Source: The Edge
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