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 14): The FBM KLCI closed up 5.3 points or 0.34% at its intraday high today following a final-hour spike in an apparent reaction to Finance Minister Lim Guan Eng's statement that Prime Minister Tun Dr Mahathir Mohamad will announce an economic stimulus package on Feb 27 to mitigate the Covid-19 outbreak's impact on Malaysia.
At 5pm today, the KLCI closed at 1,544.46, supported by sharp 11th-hour gains in prices of index-linked stocks including Maxis Bhd and Digi.Com Bhd.
"The stimulus intends to mitigate the adverse external economic impacts of the Covid-19 outbreak on Malaysia while preserving the welfare of the rakyat (people)," Lim said in the statement.
Across Bursa Malaysia, 2.67 billion shares exchanged hands for RM2.26 billion. A total of 465 counters gained against 330 decliners.
Maxis closed up 13 sen or 2.36% at RM5.63 while Digi.Com rose eight sen or 1.83% to RM4.45.
Fund managers said Malaysian shares will also take cue from the ongoing corporate financial reporting season for the October-to-December 2019 quarter (4Q19).
“The ripple is still there. Let’s see the corporate results over the next few weeks and see if the weakness of the 4Q19 GDP (Malaysia gross domestic product numbers) translated (into weakness) across the market or (the impact is) concentrated within certain sectors,” Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com today.
Source: The Edge
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