Bank of Russia

Bank of Russia

October 27, 2017

The fifth cut so far in 2017 in Russia’s central bank interest rate, this time to 8.25% from 8.50%, was announced today. The previous four reductions totaled 150 basis points, and previous cuts amounted to six percentage points during the first seven months of 2015 and 100 basis points last year. All in all, the […] More

Stronger Yen and Dollar ahead of U.S. GDP Figures

October 27, 2017

The earliest estimate of U.S. third-quarter GDP growth gets released shortly. Forecasters anticipate similar growth to the 3.1% result in 2Q. The dollar meanwhile has continued to strengthen against the euro (0.3% overnight) in response to contrasting monetary policies. Trump is expected to replace Yellen with a more hawkish person to lead the Fed, while yesterday’s […] More

Bank of Russia Eases

September 15, 2017

The fourth central bank interest rate cut of 2017 was made today, but the new policy rate level, 8.5%, still constitutes a “moderately tight stance” according to a released statement. Inflation now is close to the 4% target and well below the policy interest rate level. Furthermore, expected inflation has declined. However, officials do not […] More

Bank of Russia’s Interest Rate Left at 9.0%

July 28, 2017

The interest rate previously had been cut this year by 25 basis points in March, 50 bps in April and 25 bps in June, but a released statement observes “The decline of inflation expectations has come to a halt, consistent with predictions, in response to price movements in a number of products and services. In order to maintain inflation close to the 4% target, the Bank of Russia […] More

Another Russian Central Bank Interest Rate Cut

April 28, 2017

The Bank of Russia’s 50-basis point key interest rate cut to 9.25% decided today is larger than analysts were expected. Officials justified the decision by noting that inflation fell sharply last quarter to 4.3% (not far above the 4.0% target). Expected inflation is also lower, growth is positive, and real interest rates remain positive even […] More

Bank of Russia Cuts Key Interest Rate to 9.75%

March 24, 2017

Having previously cut its interest rate by six percentage points during the first seven months of 2015 and by an additional 50 basis points each in June and September of last year, most analysts were not anticipating further easing at this time. A released statement concedes that inflation risks “remain elevated.” Nonetheless, the ruble has […] More

Bank of Russia Retains a Moderately Tight Stance

February 3, 2017

The Bank of Russia’s key policy interest rate was slashed by six percentage points during the first seven months of 2015 and by 50 basis points each last June and September, but it has stayed at 10.0% for the past 4-1/2 months and will probably remain at that level at least through mid-2017. This week’s […] More

U.S. Labor Statistics, Service-Sector PMIs, and a Focus on Some Central Banks

February 3, 2017

The dollar rose modestly overnight ahead of the U.S. jobs data, gaining 0.4% against the kiwi, 0.3% versus the yen, Swissie and sterling, 0.2% relative to the euro, loonie and Australian dollar, and 0.1% against the Mexican peso. China reopened after a week celebrating the Lunar New Year. The dollar fell 0.2% against the yuan, […] More

Bank of Russia

December 16, 2016

Monetary officials left Russia’s key central bank interest rate at 10.0% and released a report that was more equivocating than prior reports about how soon the rate can be lowered further. Actual inflation is behaving as assumed, but expected inflation is higher than hoped. A number of inflation risk factors are mentioned. The restraining effect […] More

Bank of Russia Retains Key 10.0% Interest Rate

October 28, 2016

Two 50-basis point interest rate cuts have already been implemented this year in June and September on top of 600 basis points of easing done during the first seven months of 2015. A decision at this month’s meeting not to ease further in 2016 is defended, however, on the grounds that a slowdown in inflation […] More

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