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 (Feb 27): The FBM KLCI gained 11.38 points or 0.61%, lifted mainly by banking stocks. At 5pm, the KLCI closed at 1,871.46 points.
Bursa Malaysia's finance index rose 201.41 points or 1.11% to settle at 18,299.16 points as Hong Leong Financial Group Bhd and Hong Leong Bank Bhd shares emerged among Bursa Malaysia's top 10 gainers.
“On a technical basis, the KLCI should continue to see an uptrend to about 1,880 level. If there is any negative external surprise, we should see a support level at about 1,840 to 1,850,” Hong Leong Investment Bank head of retail research Loui Low said.
Across Asian markets, Japan’s Nikkei 225 gained 1.07%, Hong Kong’s Hang Seng fell 0.73% while South Korea’s Kospi slipped 0.06%.
Reuters reported that global shares held firm near three-week highs on Tuesday as US borrowing costs eased ahead of Federal Reserve Chairman Jerome Powell's awaited first congressional testimony later in the day. Powell's debut appearance is seen as critical for financial markets at a time when many investors are nervous about the Fed's policy normalisation following years of stimulus after the financial crisis almost a decade ago.
Source: The Edge
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