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 (Dec 30): Bursa Malaysia took a slight breather in the late session as profit-taking set in on the final trading day of this year, before regaining momentum to swing to an upbeat mode despite the barometer index failing to stay above the key 1,500 level. The morning session performance was stellar until the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) began to fluctuate between gains and losses in the afternoon session to end the day at 1,495.49, up 3.86 points, thanks to the rally in Petronas Dagangan Bhd and Tenaga Nasional Bhd stocks. The market bellwether opened 0.3 points higher at 1,491.93 and hit an intra-day high of 1,503.33 and an intra-day low of 1,479.13 on Friday (Dec 30). Market breadth turned mixed with 445 gainers and 443 losers, while 413 counters were unchanged, 954 untraded, and 49 others suspended. Turnover was unchanged at 2.43 billion units but value was higher at RM2.51 billion compared to Thursday’s RM1.52 billion. Year-to-date, the ...