The ruble reacted with restraint to the decision of the Central Bank of the Russian Federation’s board of directors to raise the key interest rate by 3.5 percentage points to 12% per annum and continued to decline almost immediately. This was reported to socialbites.ca by BCS Mir Investments stockbroker Alexander Bakhtin.
“The ruble reacted with restraint to the Central Bank’s decision to raise the policy rate by 350 basis points to 12% after an extraordinary meeting. Immediately after the decision, the dollar was lowered to below 97 rubles, the euro to 105 rubles, and the yuan to 13.3 rubles. However, after 15-20 minutes, the currencies began to “pop out”, Bakhtin said.
Especially after the correction, the dollar returned to 98 rubles, the euro – to 107.3 rubles.
According to Bakhtin, the current reaction of the ruble rate to the results of the Central Bank meeting is due to the implementation of the main move the day before, when there were reports that an extraordinary meeting of the regulatory leadership was held.
“The regulator may also need to adjust export earnings return standards and restrictions on capital exports to bring exchange rates closer to fundamentally justified levels. For a dollar, this is 85-90 rubles, ”says Bakhtin.
Sovcombank Chief Analyst Mikhail Vasiliev, in an interview with socialbites.ca, noted that the reason for the extraordinary meeting was the rapid depreciation of the Russian currency in 2023. He stated that since the beginning of the year, the ruble rate has fallen by 40 percent against the dollar and 44 percent against the euro.
The Central Bank of the Russian Federation decided to immediately raise the interest rate to 12%, based on the possibility of increased inflation (4.4% on an annual basis compared to August 7 and was 4%), the inflationary expectations of the public and the expansion of production, which creates increased demand for imported products. excess demand.
Formerly socialbites.ca saidhow the key ratio affects the life of Russians.
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.