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 (May 30): The FBM KLCI fell 56.56 points or 3.18% with Asia shares as investors took cue from Italy's political crisis. Malaysian construction stocks fell after the Government said it decided to scrap the Kuala Lumpur-Singapore High Speed Rail (KL-Singapore HSR) and Malaysia's third mass rapid transit (MRT3) projects. At Bursa Malaysia, the KLCI closed at 1,719.28 after declining to its intraday low at 1,709.51. Bursa Malaysia's small-cap and construction indices dropped 3.37% and 10.88% respectively. Across Bursa Malaysia, volume was 3.6 billion shares valued at RM4.46 billion as construction stocks ended among the top decliners and most-active list. Top decliners included Gamuda Bhd, which fell 95 sen to RM3.18. The most-active list included YTL Corp Bhd whose shares dropped nine sen to 93 sen. Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com: “Due to this uncertainly (after Malaysia scr...