Despite Surprise Rate-Hike, Russian Ruble Crashes Most In 6 Years | Zero Hedge.
Yesterday’s record-breaking surge in the Ruble appears, as we warned, to have been front-running today’s rate-hike announcement… and despite its surprise size, it is disappointing the market. The 5%-plus swing higher in the Ruble yesterday has been notably retraced as the Russian currency plunges (biggest drop in almost 6 years) after the central bank hiked rates 150bps (expectations were broadly of a 50bps hike) but it appears the ‘whisper’ number was a 200bps hike and a shift in FX policy to more active intervention. The inituial rip rally instantly faded and despite low liquidity due to Russian holidays, USDRUB is back over 43 – which would be a new record low close if it holds.
Russian Central Bank disappointed…
- *RUSSIAN CENTRAL BANK RAISES KEY RATE TO 9.50% (up from 8%)
- *BANK OF RUSSIA DOESN’T ANNOUNCE CHANGES TO FX POLICY
- *BANK OF RUSSIA SEES SIGNS FOR SLOWING INFLATION IN MID-TERM
- *BANK OF RUSSIA READY TO EASE IF EXTERNAL CONDITIONS IMPROVE
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