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 29): Bursa Malaysia wrapped up 2023 to close at its intraday low at 1,454,66 on Friday compared with the first-day opening this year at 1,488.54, weighed by persistent selling pressure throughout most part the year due to outflow of funds as a result of various rate hikes in the US, a dealer said. Consequently, Rakuten Trade equity research vice president Thong Pak Leng said the FTSE Bursa Malaysia KLCI (FBM KLCI) fell to its year low of 1,374.64 on June 8, 2023, but the situation improved when foreign funds returned to the country at the beginning of July. At 5pm, the KLCI closed 2.75 points or 0.18% lower to 1,454.66 from Thursday’s close of 1,457.41. The key index opened 0.16 of a point better at 1,457.57 and thereafter moved to a high of 1,461.4 during the early morning session. In the broader market, losers surpassed gainers 486 to 431, while 453 counters were unchanged, 890 untraded and 45 others suspended. Turnover went up to 4.67 bill...