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 9): The FBM KLCI increased 12.7 points or 0.7% as Asian shares rose with US equity futures. World shares rose after US President Donald Trump expressed optimism on US-China ties despite the current trade spat between both countries.
Trump said via Twitter yesterday President Xi Jinping and him will always be friends, no matter what happens with the US-China dispute on trade. Trump tweeted: "China will take down its trade barriers because it is the right thing to do. Taxes will become reciprocal and a deal will be made on intellectual property. Great future for both countries!"
At Bursa Malaysia today, the KLCI closed at 1,849.71 at 5pm. Across Asia, Japan's Nikkei 225 gained 0.51% while Hong Kong’s Hang Seng climbed 1.29%. Among US equity futures, the Dow Jones mini Futures rose 0.79% as at 5:46pm.
Reuters reported that global stocks rose on Monday as the US government played down fears of a trade war with China that has roiled markets over the last week. It was reported that Trump's chief economic adviser, National Economic Council Director Larry Kudlow, said in an interview on Sunday the ongoing spat "might turn out to be very benign".
In Malaysia, Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew said the market had been eager to hang onto any suggestion that the US-China trade war risk will ease.
“If you look at the market, it has been very volatile, swinging up and down on any news that could suggest stronger trade barriers or any indication of a lesser one. I believe this volatile trend will continue moving forward,” Pong said.
Source: The Edge
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