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 31): The FBM KLCI has been on an upward trend for the fifth consecutive day today, bucking regional trend as sentiment improves over certain better-than-expected corporate earnings. In addition, some foreign stockbroking houses have upgraded Malaysian stock market. At market close, the benchmark index climbed 14.26 points or 0.87% to close at its intra-day high of 1,650.76 points. For the week, the benchmark index has gained 52 points, or 3.28%. When contacted, CIMB Research analyst Nick Foo Mun Pang told theedgemarkets.com that Malaysian market was oversold at below 1,600 points last week, and it was staging a rebound this week. "The KLCI went up by 52 points (3.28%) week-on-week, sentiment has improved after foreign research houses like HSBC and UBS upgraded Malaysian market," he said. "Next week will be a holiday-shortened week, we believe KLCI would be range bound around 1,650 points as we expect the market to hav...