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 13): The FBM KLCI closed up 7.35 points or 0.41% on bargain hunting and as Asian stocks rose on renewed interest in US-China trade talks.
Reuters reported that Asian shares advanced on Thursday on news the Trump administration has reached out to China for a new round of trade talks, which raised hopes for a deal easing the bitter tariff dispute between the world's two biggest economies. It was reported that MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.6 percent, a day after it hit 14-month lows.
At Bursa Malaysia, the KLCI closed at 1,792.6 after falling to its intraday low at 1,777.45. Yesterday, the KLCI fell 13.92 points.
Today, Vincent Khoo, head of research for Malaysia at UOB Kay Hian said: “I think the local market will continue to be squeezed by external sentiment." Khoo noted that the KLCI's recovery followed the direction of regional peers.
He said Malaysian markets may continue to track the movements of Mainland China and Hong Kong indices. Today, the Shanghai Stock Exchange Composite climbed 1.15% while Hong Kong's Hang Seng rose 2.54%. Elsewhere across Asia, Japan's Nikkei 225 closed up 0.96%.
Across Bursa Malaysia, 2.38 billion shares were crossed for RM2.58 billion. Top gainers included United Plantations Bhd besides KLCI-linked stocks, CIMB Group Holdings Bhd and Axiata Group Bhd.
Source: The Edge
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