- Central Bank of Russia raises rate more than expected, boosting RUB.
- USD / RUB at one-month lows, below 75.00.
The Russia’s central bank announced on Friday that it had raised its monetary policy rate by 50 basis points to 5%. The ruble appreciated throughout the market after the decision, reaching a month high against the dollar, as the market consensus was for a 25 basis point rise. The USD / RUB operates at 74.84, losing 0.75%, with the ruble being the currency that rises the most so far on Friday.
The Russian central bank claimed that You will consider the need for further key rate increases at your next meetings. He indicated that “key rate decisions will take into account the dynamics of real and expected inflation in relation to the target and economic evolution during the projection horizon, as well as the risks posed by internal and external conditions.”
They estimate that inflation annual will return to the bank’s target in mid-2022 and will remain close to 4%. The inflation forecast for 2021 increased 4.7 / 5.2%.
The monetary authority explained that retail inflation, as well as the inflation expectations of households and companies, continue to be high.
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