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 (Sept 27): The FBM KLCI fell 0.08 point to settle at 1,798.64 points with Asian shares after the US Federal Reserve (Fed) raised interest rates. At 5pm, the KLCI cut losses after falling to its intraday low at 1,793.83 points. Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com the KLCI was, however, supported by rising crude oil prices at above US$80 a barrel. “(At Bursa Malaysia) the sentiment was quite negative today. Both FBM Small Cap and ACE (indices) were in the red most of the day, mainly affected by the Fed’s move to raise interest rates. "It was not just us, most emerging markets were declining today. This trend is likely to persist in the near term,” Leong said. Across Asian stock markets, Japan’s Nikkei 225 fell 0.99% while Hong Kong's Hang Seng declined 0.36%. Bloomberg reported that stocks in Europe and Asia fell Thursday as investors digested the likelihood of more Federal Reserve interest-r...