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 (July 31): The FBM KLCI fell 7.82 points or 0.48% today to settle at 1,634.87 points after Asian share markets closed down as fresh trade war concerns emerged due to threats from US President Donald Trump to China. Global investors are also anticipating the widely-expected US intrest rate cut as they evaluated the impact of a no-deal Brexit on currency markets. Across Asian stock indices today, Japan's Nikkei 225 closed down 0.86%, South Korea's Kospi fell 0.69% while Hong Kong's Hang Seng dropped 1.31%. Reuters reported that Asian shares fell on Wednesday to a six-week trough, rattled by fresh trade war concerns following threats from Trump to Beijing, while increasing worries about a no-deal Brexit kept the pound under pressure. It was reported that as trade talks between the world's two biggest economies continued in Shanghai on Tuesday, Trump warned China against trying to wait out his first term in office t...