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...
Foreign investors ended their six-week net buying streak with a net outflow of RM527 million last week, according to a report by MIDF Research on Monday. The largest daily outflow was recorded on Wednesday at RM165.5 million.
Despite the overall outflow, sectors such as Utilities (RM40.9 million), Industrial Products & Services (RM24.8 million), and Healthcare (RM8.2 million) saw net foreign inflows. On the other hand, Financial Services (-RM193.7 million), Technology (-RM137.3 million), and Consumer Products & Services (-RM50.7 million) experienced the highest net foreign outflows.
Local institutions remained supportive, net buying RM240.3 million for the third consecutive week, while local retailers reversed their two-week selling trend with net purchases of RM286.7 million.
However, the average daily trading volume (ADTV) saw declines across all investor groups. Foreign investors' ADTV dropped by 34.0%, local institutional investors by 21.2%, and local retail investors by 7.6%.
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