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 (June 9): The FBM KLCI posted today a 6.48-point or 0.41% decline to close at its intraday low of 1,581.48 on profit taking and as Asian equity indices fell, while investors continued to weigh the impact of progress in Covid-19 vaccination to rejuvenate a pandemic-hit world economy.
Across Bursa Malaysia at 5pm, there were 640 decliners and 367 gainers. A total of six billion securities were traded for RM3.2 billion.
"The plan for further acceleration in daily vaccination by the government in coming months to 300,000 daily jabs by August, if realised, should sustain economic recovery plays, hence sectors such as construction, banking and property should outperform,” TA Securities Holdings Bhd analysts wrote in a note today.
The KLCI finished up 9.51 points at 1,587.96 yesterday.Across Asia today, it was reported that the MSCI's broadest index of Asia-Pacific shares outside Japan ticked down 0.3%, while Japan's Nikkei average shed 0.4%.
"Hong Kong shares closed lower today, dragged by tech firms after the US Senate passed a package of laws aimed at boosting its ability to take on Chinese technology. The Hang Seng Index ended down 38.75 points or 0.13% at 28,742.63. The Hang Seng China Enterprises Index fell 0.23% to 10,704.75,” Reuters reported.
Globally, it was reported that investors were focused on US bond yields, which touched their lowest levels in a month, as investors bet the US Federal Reserve (Fed) was some way off from tapering its economic stimulus.
It was reported that the 10-year US debt yield hit a fresh month low for the second day running, reaching 1.504% and down a quarter of a percentage point from a 14-month peak hit in March.
Such sentiment weakened the US dollar against other currencies, including the ringgit, which strengthened to 4.1170 versus the US dollar at the time of writing.
Also at the time of writing, the US Dollar Index, which measures the US dollar’s value against a basket of currencies, was down 0.06% at 90.0190.
Source: The Edge
Comments
Post a Comment