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 (March 16): The FBM KLCI ended up 3.04 points or 0.19% at 1,623.96 today after Asian equity indices closed higher and as investors weighed speculation on Malaysia’s political uncertainty due to opposition leader Datuk Seri Anwar Ibrahim’s surprise press conference, which was scheduled at 4:30pm today.
News reports quoting Anwar said today that he dismissed queries about a possible partnership with Umno for the 15th general election. It was reported that Anwar indicated talks in this direction were still at a very early stage.
Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com the KLCI's gains today were not significant due to speculation on "fresh political uncertainty" in Malaysia and as the 30-stock KLCI took a cue from weakness in crude oil and crude palm oil prices.
The KLCI closed higher today after rising to its intraday high at 1,625.52 and falling to its intraday low at 1,617.92 as Asian equities tracked US stock indices overnight rise.Today, it was reported that Asian stocks rose on Tuesday, tracking Wall Street's advance to record highs, as investors anticipated the US Federal Reserve and other central banks meeting this week will keep policies accommodative to help drive a post-pandemic global economic recovery.
In commodity markets, it was reported that crude oil prices dropped on Tuesday, extending declines to three consecutive days, as rising stockpiles in the US added to the risks to a demand recovery after countries including Germany and France halted Covid-19 vaccinations.
"Brent crude was down 69 cents, or 1%, at US$68.19 by 0531 GMT, having dropped 0.5% on Monday. US crude was down 69 cents, or 1.1%, at US$64.70 a barrel, after declining 0.3% in the previous session,” Reuters reported.
Across Bursa Malaysia, there were 724 decliners versus 457 gainers. Trading volume stood at 11.88 billion shares worth RM5.56 billion.
Source: The Edge
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