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 bucked the regional trend to end the week sharply lower due to broad-based selling, said Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng. With the key index falling 1.10%, investors exercised caution due to global inflation concerns, fuelled by elevated crude oil prices and the looming US government shutdown. At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 15.94 points to 1,424.17 to mark its intraday low from Wednesday’s close of 1,440.11. The benchmark index, which opened 3.72 points easier at 1,436.39, hit an intraday high of 1,436.97 in the morning session before succumbing to selling pressure in late trading. On the broader market, decliners beat gainers 578 to 379 while 438 counters were unchanged, 990 untraded and 98 others suspended. Turnover increased to 3.03 billion units worth RM2.43 billion from 2.97 billion units worth RM1.94 billion on Wednesday.