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...
Market Daily Report: No reprieve seen as FBM KLCI skids to lowest in five years amid Wuhan virus fears
KUALA LUMPUR (Jan 31): No reprieve was seen on the local bourse today as the FBM KLCI recorded losses for the ninth consecutive day as fears deepened across the world after the World Health Organisation declared a global health emergency as the Wuhan coronavirus outbreak's death toll passed the 200-mark, while infection rates surpassed SARS'. Though the benchmark index started the day with a little rebound and rose to as high as 1,552.46 — up 0.44% from the previous day's close of 1,545.59 — it struggled to maintain the momentum. At 5pm, it closed 14.53 points 0.94% lower at 1,531.06 — its lowest in more than five years. Turnover was high at 3.79 billion shares worth RM3.29 billion, with 834 losers versus 150 gainers. Rakuten Trade Sdn Bhd research vice president Vincent Lau, who described the market as "a sea of red" today, said investors remained cautious. TA Securities, meanwhile, said in a note today that “increased worries over...