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 to finalise a deal. It was
reported that Trump tweeted that, if he wins re-election in November
2020, the outcome could be no agreement or a harsher one.
On US monetary policy, it was reported that later in the day, the US Federal Reserve is widely expected to cut interest rates for the first time since the financial crisis more than a decade ago.
In Malaysia, Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com that as the US-China trade spat persisted, "no one knows what the outcome will be".
On US monetary policy, Wong said the current US economic condition does not indicatively show that there should be an interest rate cut although bond markets have priced in a rate reduction.
"Either way, it (rate cut or no rate cut) will negatively affect the markets," he said.
Across Bursa Malaysia, Wong observed that investors might have trod a cautious path amid global uncertainties after Bursa decliners led gainers by 499 to 257 respectively on what appeared to be broad-based selling across the exchange.
Top Bursa decliners included KLCI stocks Petronas Dagangan Bhd, Hong Leong Financial Group Bhd and Public Bank Bhd.
Source: The Edge
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.
On US monetary policy, it was reported that later in the day, the US Federal Reserve is widely expected to cut interest rates for the first time since the financial crisis more than a decade ago.
In Malaysia, Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com that as the US-China trade spat persisted, "no one knows what the outcome will be".
On US monetary policy, Wong said the current US economic condition does not indicatively show that there should be an interest rate cut although bond markets have priced in a rate reduction.
"Either way, it (rate cut or no rate cut) will negatively affect the markets," he said.
Across Bursa Malaysia, Wong observed that investors might have trod a cautious path amid global uncertainties after Bursa decliners led gainers by 499 to 257 respectively on what appeared to be broad-based selling across the exchange.
Top Bursa decliners included KLCI stocks Petronas Dagangan Bhd, Hong Leong Financial Group Bhd and Public Bank Bhd.
Source: The Edge
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