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 (Sept 29): Bursa Malaysia finished at its intra-day high for the second consecutive day on Wednesday, lifted by late buying in selected financial services as well as industrial products and services counters amid concerns over the local and global economic outlook, dealers said. At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) added 0.83 of-a-point or 0.05% to 1,547.65 from Tuesday’s close of 1,546.82. The index, which opened 4.86 points lower at 1,541.96, moved as low as 1,528.69 during the day. Meanwhile, market breadth was negative with decliners surpassing gainers 581 to 398, while 455 counters were unchanged, 870 untraded and 85 others suspended. Turnover declined to 3.67 billion units worth RM2.71 billion from Tuesday’s 5.45 billion units worth RM3.29 million. A dealer said investors’ sentiment turned cautious on Wednesday over the World Bank’s move to revise Malaysia’s 2021 economic growth projection downwards to 3.3% from the 4.5%...