Bank of Russia

Bank of Russia

March 20, 2020

The Bank of Russia had previously lowered its key interest rate from 7.75% prior to June 2019 to 6.0% after a 25-basis point cut in February. However, this easing cycle had to be put on indefinite pause this month because a tumbling ruble is likely to raise inflation above the 4% target in coming months. […] More

Dollar Down After Fed Expands Currency Swap Network.. Equities Up in Asia and Europe

March 20, 2020

The dollar fell overnight by 2.9% against the Australian dollar, 2.5% relative to the kiwi, 2.2% versus sterling, 2.0% vis-a-vis the loonie, 0.8% against the peso, 0.6% versus the yen and 0.4% relative to the euro and Swiss franc. The swap line arrangement that enables central banks to exchange on a temporary basis their own […] More

British Election Lifts Sterling… U.S.-Sino Phase I Progress Boosts Stocks

December 13, 2019

Boris Johnson’s Conservative Party won 365 parliamentary seats, clearing the majority threshold by 39 seats. The Conservatives won 43.6% of the votes to Labour’s 32.2% share. Sterling in response catapulted to an 18-month high of $1.3515 but has settled back to a still impressive 1.3% net overnight advance against the dollar. The greenback also touched […] More

Fresh Wave of Risk Aversion

October 26, 2018

Investors will get their first peak at U.S. third-quarter GDP in less than an hour. Growth likely decelerated from the 4.2% pace in the second quarter but still probably managed to be at 3.0% or a bit above. But markets are reacting most keenly to the Federal Reserve officials’ disregard of President Trump’s criticism of […] More

A Shift from Fixed Income Assets Into Stocks

September 14, 2018

The second week of September came and went without the feared announcement of much higher U.S. tariffs. Even though that danger remains looking ahead, there’s been a return ot riskier assets. Share prices in the Pacific Rim rose 1.2% in Japan today, 1.0% in Hong Kong and Singapore, 1.3% in Indonesia and Taiwan, and 1.4% […] More

Bank of Russia Retains 7.25% Main Interest Rate

June 15, 2018

Russian monetary easing is on pause. The rate had been last cut by 25 basis points in both February and March and before that by a full percentage point during March-June of 2017 and 125 basis points during the final quarter of last year. But after leaving the one-week repo rate at 7.25% following this […] More

More Trouble

June 15, 2018

President Trump has approved a 25% tariff on $50 billion of Chinese imports. The Bank of Japan gave a gloomier assessment of inflation, downgrading its range to 0.5-1.0% from around 1.0% and observing that medium-term and long-term inflation expectations aren’t escaping a deflationary mindset. Policy settings were left unchanged, and an extremely accommodative stance seemingly […] More

A 25-Basis Point Cut in the Bank of Russia’s Main Interest Rate to 7.5%

February 12, 2018

During calendar 2017, a combination of three 50-basis point central bank interest rate reductions including one in December and three other cuts of 25 basis points lowered the rate to 7.75% from 10.0%. For this year’s first easing, officials chose a 25-basis point increment but released a statement that observed a significant current shortfall of […] More

Bank of Russia

December 15, 2017

Russia’s key monetary policy rate has been reduced by a greater-than-expected 50 basis points to 7.75%. A main reason why central bank officials were able to slice 50 basis points from their interest rate as they did in September and April rather than 25 bps was was done in October, June, and March is related […] More

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