Russia raises the interest rate to 7.75%, USD/RUB dips
|Russia's central bank raised the interest rate from 7.50% to 7.75%. Markets had not anticipated the Moscow-based institution led by Governor Elvira Nabiullina to change rates.
USD/RUB trades a tad lower after the announcement, at around 66.30.
The Russian economy suffers from sanctions and falling oil prices.
The increase in the interest rate serves to support the Russian Rouble amid the global headwinds. On the other hand, An increase in Value Added Tax (VAT) expected in January lifts inflation expectations. Annual inflation stood at 3.8% as of November, close to the 4% upper limit set by the central bank.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.