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 6): The FBM KLCI closed 4.5 points or 0.27% lower amid weaker Asian stock markets after US President Donald Trump threatened to raise US tariffs on Chinese goods.
At 5pm, the KLCI closed at 1,632.8 after falling to its intraday low at 1,623.61. Across Bursa Malaysia, 2.79 billion shares worth RM1.7 billion were traded as decliners outdid gainers by a stark 684 to 162.
In China, the Shanghai Stock Exchange Composite closed down 5.58% while Hong Kong's Hang Seng fell 2.9%. Elsewhere across Asia, South Korea and Japan markets were closed today for public holidays.
US stock futures were also lower. At 5:39pm, the S&P and Dow futures fell 1.79% and 1.91% respectively while Nasdaq futures dropped 2.28%.
Reuters reported today that Trump stunned global markets with a tweet
late on Sunday announcing he would hike US tariffs on US$200 billion
worth of Chinese goods this week and target hundreds of billions more
soon, saying trade talks with China were going too slowly.
It was reported that he would raise tariffs on the US$200 billion of Chinese goods to 25 percent on Friday from 10 percent. It was reported that he also said he would target a further US$325 billion of Chinese goods with 25 percent tariffs "shortly".
In Malaysia today, Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com: “Our market is defensive, therefore, less selling pressure.
“Though factors that will be looked at are policy direction on economic growth as well as certain industries such as infrastructure, we still need a clearer picture on this.”
He said this today as investors looked ahead to Bank Negara Malaysia's (BNM) monetary policy statement tomorrow. At its latest monetary policy committee meeting in March, BNM said the committee decided to maintain the overnight policy rate at 3.25%.
Source: The Edge
It was reported that he would raise tariffs on the US$200 billion of Chinese goods to 25 percent on Friday from 10 percent. It was reported that he also said he would target a further US$325 billion of Chinese goods with 25 percent tariffs "shortly".
In Malaysia today, Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com: “Our market is defensive, therefore, less selling pressure.
“Though factors that will be looked at are policy direction on economic growth as well as certain industries such as infrastructure, we still need a clearer picture on this.”
He said this today as investors looked ahead to Bank Negara Malaysia's (BNM) monetary policy statement tomorrow. At its latest monetary policy committee meeting in March, BNM said the committee decided to maintain the overnight policy rate at 3.25%.
Source: The Edge
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