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 (May 31): Bursa Malaysia recouped Monday's (May 30) losses to close at its intraday high on Tuesday, with the key index surging 1.75% on late buying interest, mostly in heavyweights particularly financial services as well as plantation counters. At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) jumped 27.08 points to 1,570.1 from 1,543.02 at Monday’s close. The index opened 1.33 points higher at 1,544.35 and hit a low of 1,537.95 in the morning session. Market breadth was also positive with gainers leading losers 535 to 395, while 425 counters were unchanged, 924 untraded, and 42 others suspended. Total turnover increased to 3.8 billion units worth RM6.11 billion from 3.05 billion units worth RM1.82 billion on Monday. Rakuten Trade Sdn Bhd vice president of equity research Thong Pak Leng said the local bourse closed higher in tandem with improving sentiment in the region, where the main indices performed mostly higher amid China’s move to ease its...