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 (Feb 10): The FBM KLCI closed 0.75% lower today amid renewed fears on the Wuhan coronavirus outbreak, as death toll climbed.
The benchmark index snapped its four days of consecutive gains, as it retreated 11.69 points to 1542.80, dragged by Hong Leong Financial Group Bhd, Sime Darby Bhd and Genting Malaysia Bhd.
Rakuten Trade vice president of research Vincent Lau, when contacted, maintained that “the focus remains on the coronavirus outbreak”, where the death toll has surpassed that of the severe acute respiratory syndrome (SARS) outbreak in 2003 over the weekend.
At press time, the virus has infected over 40,000 individuals in 28 countries, with 910 officially dead.
Meanwhile, foreign investors are reported to have continued to sell Malaysian equities. Foreign investors disposed of RM327.4 million net of local equities last week, the third weekly foreign net outflow so far in 2020.
Acoss Bursa Malaysia, some 2.42 billion shares valued at RM1.92 billion exchanged hands. Decliners led gainers by 597 to 285.
The Shanghai SSE Composite Index rose 0.51% as mainland China loosened travel restrictions, as its population returned to work. The Shenzen SZSE Component Index, too, rose 1.1%.
Elsewhere, markets were mixed as sentiment remained jittery due to the virus outbreak. Hong Kong’s Hang Seng Index slid 0.59%, South Korea’s KOSPI retreated 0.49%, whereas Japan’s Nikkei 225 fell 0.6%.
Source: The Edge
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