Central Bank of Russia

Unscheduled Policy Review in Russia Leads to Another Three Percentage Point Interest Rate Cut

May 26, 2022

In an unscheduled policy meeting at the Central Bank of Russia, officials implemented their third 300-basis point interest rate cut since April 8 and “holds open the prospect of key rate reduction at its upcoming meetings.” Economic growth in Russia appears to have slumped very sharply this quarter. The ruble plunged very sharply when Russia’s […] More

Thursday’s Focus Turns to Central Banks

May 26, 2022

The dollar slid overnight by 0.2% against the euro, yen, sterling, and Mexican peso and by 0.1% versus the Swiss franc and on a weighted basis. Alternatively the U.S. currency advanced 0.6% relative to the Chinese yuan, 0.3% relative to the Russian ruble, and 0.2% vis-a-vis the Turkish lira. The kiwi, Aussie dollar and Canadian […] More

Central Bank of Russia Cuts Interest Rate Sharply Further

April 29, 2022

The Central Bank of Russia felt sufficient room to implement its second 300-basis point cut this month in its policy interest rate, which now becomes 14.0%.  Officials had been expected to reduce interest rates by just 200 basis points. Its statement of explanation touted the ruble’s recovery to pre-war levels and asserted that with”price and […] More

Concerns about Corporate Earnings

April 29, 2022

Led by the tech sector especially pre-open declines of nearly 10% in Amazon and 2.5% in Apple, U.S. stock futures are lower on this final trading session of the difficult month of April. Amazon reported a quarterly drop in earnings, and Apple warned of persistent supply delays. Having touched a 19-year weighted high on Thursday, […] More

Pakistani and Russian Central Bank Interest Rates Undergo Big Changes in Opposite Directions

April 8, 2022

The latest batch of central bank interest rate decisions includes a 250 basis point hike in the State Bank of Pakistan’s policy rate to 12.25%. The decision was made at an emergency unscheduled meeting, accompanied by an upwardly revised 11% projected rate of inflation this year, and explicitly intended to restore a premium between the […] More

More Bad Inflation News and a Diversity of Central Bank Decisions

April 8, 2022

The dollar continued to trade at historically firm levels overnight. The weighted DXY dollar index is up 0.1% and touched another multiyear high of 99.99. Gains of 0.5%, 0.3% and 0.2% were made against the New Zealand, Australian and British currencies, but the greenback dipped 0.2% versus the Russian ruble. Asian stock markets made modest […] More

A Turn for the Worse in Ukraine-Russian Conflict Sends Dollar Up and Equities Down

March 18, 2022

Hopes had been kindled early this week by reports of progress in cease-fire talks, but those signs have not panned out, and a new worry is that China is moving closer to supporting Putin’s imperialistic ambitions. The Central Bank of Russia did not raise its 20% policy rate further at today’s scheduled review, claiming that […] More

Escalating Financial and Political Chaos in Ukraine and Russia, and Rest of World Feeling Pain, Too

February 28, 2022

Ukrainian and Russian talks in Belarus are unlikely to defuse the military conflict. Russian President Putin seeks to replace Ukraine’s government and has insinuated that he may use nuclear weapons if Nato doesn’t back off. In this high stakes game game of chicken, Nato allies seek to decapitate the Russian ruble and financial markets and […] More

Russian Monetary Policy Rate Hiked Full Percentage Point to 9.5%

February 11, 2022

The Central Bank of Russia took even more aggressive monetary policy action, lifting its policy rate to 9.5% following increases of 100 basis points also in December and 75 bps in October. Over the past 11 months, the rate has risen 525 basis points, and a released statement “holds open the prospect of further key […] More

Many Investors Revising Expected Fed Tightening Upward as Inflationary Pressure Spreads and Other Central Banks Move Aggressively

February 11, 2022

There were further repercussions today in the aftermath of Thursday’s U.S. January CPI release. Some analysts now think that the federal funds rate could be hiked at every remaining FOMC meeting this year, and there’s been more speculation over the possibility of larger incremental moves than the standard of 25 basis points. The ten-year U.S. […] More