Bank of Russia

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

The Fifth Russian Interest Rate Hike since March

December 11, 2014

Never mind that Russia is in a severe recession caused by its own geopolitical mischief and plunging oil prices on world markets.  A full-blown currency crisis is fanning higher inflation, leaving officials at the  Bank of Russia no choice but to raise interest rates sharply in an attempt to stem heavy capital outflows.  The key […] More

Many Central Banks Are Heard From

December 11, 2014

Even before the highly awaited U.S. retail sales report, several central bank policy announcements held the market’s attention. The Reserve Bank of New Zealand kept its official cash rate at 3.5%.  Although inflation is currently modest, it is expected to approach 2% later in the forecast period, and that will likely necessitate a further increase […] More

Bank of Russia Retains a 7.5% Base Interest Rate

June 16, 2014

The policy bias, however, remains skewed toward further restraint.  The base rate had been increased by 150 basis points in early March and another 50 basis points in last April, and a statement explaining today’s decision warns In case existing inflation risks materialize, and threats to medium-term inflation targets emerge, the Bank of Russia will […] More

Bank of Russia Signals No Early Reduction of Elevated Interest Rate

March 14, 2014

In an emergency meeting on March 3rd, Bank Rossii officials raised the Russian one-week repo rate by 150 basis points to 7.0%.  Although today’s scheduled meeting did not tighten the policy stance additionally, it explained that a near-term cut is not going to happen. High inflation risks that brought about an increase in the key […] More