Russian Central Bank Leaves Rates Unchanged

Russia’s central bank left its key interest rate unchanged on Friday, taking a pause in aggressive monetary easing as renewed weakness in the ruble pushes up inflation.

The central bank left its main rate unchanged at 11 percent following its latest monetary policy meeting, a move widely expected by economists.

In a statement, the central bank said that currency moves had impacted inflation and inflation expectations, which were both on a rising trend.

The Russian ruble has declined almost 10 percent since the central bank last met in late July, fueling inflation which is running at an annual rate of almost 16 percent.

Russia has slashed rates a hefty 600 basis points so far this year to spur growth in an economy battered by a rout in oil prices and sanctions from the West for intervention in Ukraine.

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza