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 (July 30): The FBM KLCI slipped to below the key support level of 1,500 today, in line with weaker regional markets which were dragged down by Covid-19 worries. The benchmark index ended 18.33 points or 1.21% lower at its intra-day low of 1,494.6. Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the market weakness was in tandem with regional peers. “Local political uncertainty also dampened sentiment as foreign funds have been selling local equities in the past five days,” he told theedgemarkets.com . Leong expects the weakness to continue next week in the absence of fresh catalysts. Overall market breadth was negative with 665 counters ending the day in the red, versus 300 gainers and 407 that were unchanged. A total of 4.12 billion securities were traded at a value of RM2.72 billion, compared with 4.48 billion securities worth RM2.86 billion yesterday. Heavyweights that dragged the KLCI down included Sime Darby Plantation Bhd (d...