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 (Nov 12): The FBM KLCI closed down 11.95 points or 0.7% at its intraday low. Analysts said investors were concerned over the impact of crude oil prices on Malaysian government finances as they evaluated the depreciating ringgit against a strengthening US dollar.
At 5pm, the KLCI closed at 1,696.14. Across Bursa Malaysia, 1.63 billion shares worth RM1.32 billion were traded. In currency markets, the ringgit weakened to 4.1880 against the US dollar at the time of writing after trading between 4.1797 and 4.1890 today.
“Our Budget 2019 [allocation] is based on an average crude oil price of US$70 per barrel. But now that crude oil prices have fallen to the US$70 range, if it continues to tank below US$70, we are at risk of not meeting the Budget deficit of 3.4% of gross domestic product,” Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com.
Reuters reported that front-month Brent crude futures, a benchmark for global oil prices, were at US$71.59 per barrel at 0749 GMT while US West Texas Intermediate crude futures were transacted at US$61.15 per barrel.
At current levels, it was reported that oil prices have fallen about 20% since early October.
Across Bursa Malaysia today, top decliners included KLCI-linked stocks Hong Leong Financial Group Bhd and Petronas Dagangan Bhd.
Top gainers included Malaysian Pacific Industries Bhd and Dufu Technology Corp Bhd.
Source: The Edge
Across Bursa Malaysia today, top decliners included KLCI-linked stocks Hong Leong Financial Group Bhd and Petronas Dagangan Bhd.
Top gainers included Malaysian Pacific Industries Bhd and Dufu Technology Corp Bhd.
Source: The Edge
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