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 (July 27): The FBM KLCI climbed 2.91 points or 0.17% after last-minute buying of blue-chip counters like Petronas Gas Bhd and Hong Leong Bank Bhd helped the KLCI erase losses.
At 5pm, the KLCI closed at 1,769.14 points. Bursa Malaysia top gainer Petronas Gas added 46 sen to RM19 while Hong Leong Bank rose 14 sen to RM18.76.
The KLCI erased losses after falling to its intraday low at 1,760.25 points amid simmering US-China trade tension. Reuters reported that most Southeast Asian stock markets declined on Friday, as simmering US-China trade tensions kept investor risk appetite low, while Indonesia extended gains on robust corporate earnings.
It was reported that China stocks ended down on Friday, as investors were cautious amid concerns over the Sino-US trade friction. It was reported that the US signalled on Thursday it is set to push ahead on trade talks with Canada and Mexico, after agreeing to suspend hostilities over tariffs with Europe in a fragile deal that may clear the way for renewed pressure on China.
In Malaysia today, Kenanga Investment Bank Bhd head of research Chan Ken Yew told theedgemarkets.com that the KLCI's recent rise was mainly due to technical rebound. Chan said the technical rebound followed the sharp decline across emerging markets, including Malaysian stocks.
"The (Malaysian) market is still looking for another catalyst for this positive momentum to continue. Perhaps, the upcoming earnings (reporting) season in the coming month will give the market the much-needed push,” he said.
Source: The Edge
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