Bank of Russia

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

Central Bank of the Federation of Russia

September 16, 2016

The Bank of Russia as expected reduced its policy interest rate to 10.0% from 10.5%. This was the second cut of 2016 following a similarly sized reduction in June. In 2015, central bank rate cuts in January, March, April, June and July totaled seven percentage points. Monetary officials released a statement after their meeting calling […] More

Bank of Russia Keeps Interest Rate Steady at 10.5%

July 29, 2016

The Bank of Russia had reduced the rate in June, but according to its new statement, a paused decline in expected inflation led officials not to cut further this time.  The statement, however, leaves the door open to more rate relief if, as they expect, inflation actually continues to decline.  The 4% target is expected […] More

50 Basis Point Central Bank Interest Rate Cut in Russia

June 11, 2016

Russian monetary authorities reduced their key interest rate to 10.5% on Friday from 11.0% and released a statement that emphasized improved inflation dynamics.  ” Inflation risks shaped by the dynamics of budget expenditures, inflation expectations and oil prices were subdued. Certain advances in nominal wage growth did not drag on inflation. Those positive price dynamics installed […] More

Bank of Russia

December 11, 2015

Russia’s one-week auction rate increased from 5.5% prior to March 2014 to 17% by the end of last year.  900 basis points of that tightening occurred in November and December alone, as Ukraine-related sanctions on Russian trade and plunging oil prices conspired to send the ruble into a tailspin.  With GDP imploding, the ultra-tight monetary […] More

Russian Monetary Easing Paused Because of Ruble Collapse

September 11, 2015

750 basis points of tightening in December 2014 had lifted the Bank of Russia’s repo rate to 17% coming into 2015 and 11.5 percentage points above the mid-2014 level.  A shift in monetary gears as the Russian economy spiraled into deep recession say the repo rate reduced five times in the first seven months of […] More

Gloom Fails to Lift

September 11, 2015

West Texas Intermediate crude oil fell back 2.4% to $44.80 per barrel. Comex gold is 0.4% lower at $1,126.80. Ten-year British gilt and German bund yields slid two and one basis points.  The 10-year JGB stayed at 0.34%. The dollar rose 0.4% against the Swiss franc, 0.2% relative to the loonie, sterling, kiwi and Aussie […] More

Stronger Dollar, Weaker Oil Price and a Russian Interest Rate Cut

March 13, 2015

The dollar advanced overnight by 0.9% against the kiwi, 0.6% relative to the Australian dollar, 0.5% versus the Swissie, 0.4% against the euro, loonie and sterling but just 0.1% vis-a-vis the Japanese yen.  The yuan is unchanged. West Texas Intermediate oil dropped 0.8% to $46.69 per barrel.  Governments by and large had been projected an […] More

Barrage of Data and a Surprising Russian Interest Rate Cut

January 30, 2015

Russia’s one-week central bank auction rate was cut by 200 basis points to 15.0%.  Such had been raised by 900 bps during November-December.  Officials attribute the spike in inflation to ruble depreciation that will not continue and expressed concern about slowing growth. U.S. quarterly GDP growth slowed to 2.6% last quarter from 5.0% in 3Q.  […] More