Ruble plummets despite 650bp hike by Bank of Russia
Interest rate increase of 650bp does little to stem currency's precipitous decline
The ruble fell to its lowest level on record hours after the Bank of Russia hiked its key interest rate by 650 basis points (bp) in an attempt to stem the currency's decline.
The central bank raised its repo rate from 10.5% to 17% at around 1am Moscow time, in an emergency meeting after the ruble lost 12% against the US dollar on Monday.
The Bank of Russia said the decision was "aimed at limiting substantially increased ruble depreciation risks and inflation risks" in a statement.
The hike
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Most read
- Bernanke calls for total redesign of BoE forecasting
- Taking stock of Bernanke: the original sin of forecasting
- Bank of England: time for fourth-generation forecasting tools?