{"id":5042,"date":"2015-01-30T07:23:14","date_gmt":"2015-01-30T12:23:14","guid":{"rendered":"http:\/\/olduvai.ca\/?p=5042"},"modified":"2015-01-30T07:23:14","modified_gmt":"2015-01-30T12:23:14","slug":"bank-of-russia-surprises-with-unexpected-rate-cut-brings-ytd-total-of-nations-easing-to-14","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=5042","title":{"rendered":"Bank Of Russia Surprises With Unexpected Rate Cut, Brings YTD Total Of Nations Easing To 14"},"content":{"rendered":"<h3 class=\"title\"><a href=\"http:\/\/www.zerohedge.com\/news\/2015-01-30\/bank-russia-surprises-unexpected-rate-cut-brings-ytd-total-nations-easing-14\" target=\"_blank\">Bank Of Russia Surprises With Unexpected Rate Cut, Brings YTD Total Of Nations Easing To 14<\/a><\/h3>\n<p>Yesterday\u00a0<a href=\"http:\/\/www.zerohedge.com\/news\/2015-01-29\/2015-currency-wars-year-date-summary-13-rate-cuts-5-rate-hikes\">we reported\u00a0<\/a>that in less than 1 month in 2015, so far a whopping 13 countries have proceeded with &#8220;surprising&#8221; rate cuts:\u00a0<strong>Singapore, Europe, Switzerland, Denmark, Canada, India, Turkey, Egypt, Romania, Peru, Albania, Uzbekistan and Pakistan<\/strong>. As of this morning, make that total 14, because in one of the more &#8220;surprising surprises&#8221; so far, it was none other than the Bank of Russia which cut its main interest rate from the 17% shocker it instituted at an emergency session on December 17 to halt the Ruble collapse (as a result of the crude price plunge) to 15% less than an hour ago. At the same time it cut the deposit rate to 14% and the repo rate to 16%.<\/p>\n<p>More rate cuts may be coming:<\/p>\n<ul>\n<li>NABIULLINA SAYS 15% RUSSIA&#8217;S KEY RATE STILL FAIRLY HIGH<\/li>\n<\/ul>\n<p>Not surprisingly, the ruble tumbled in response with the USDRB jumping to 72, while the RTS stock index was down 2% at last check.<\/p>\n<p>The question why Russia decided to cut rates now is relevant, and likely has to do with both the recent stabilization of crude prices in the mid-$40s, coupled with pressure from the administration to lower rates which have led to the Russian economy and banking sector grinding to a near halt.<\/p>\n<p>More from the\u00a0<a href=\"http:\/\/www.wsj.com\/articles\/bank-of-russia-cuts-interest-rates-1422614890?mod=WSJ_hp_LEFTTopStories\">WSJ<\/a>:<\/p>\n<blockquote>\n<div class=\"quote_start\">This was the first rate-setting meeting with Dmitry Tulin, a former deputy chairman who replaced Ksenia Yudaeva as monetary-policy chief earlier this month.<\/div>\n<p>The statement issued after the central bank\u2019s board meeting was the latest acknowledgment by Russia\u2019s leadership that its economy will face protracted pain amid falling oil prices and a confrontation with the West over Ukraine.<\/p><\/blockquote>\n<p>And\u00a0<a href=\"http:\/\/www.bloomberg.com\/news\/articles\/2015-01-30\/ruble-breaches-70-per-dollar-after-russia-s-surprise-rate-cut\">Bloomberg&#8217;s take<\/a>:<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bank Of Russia Surprises With Unexpected Rate Cut, Brings YTD Total Of Nations Easing To 14 Yesterday\u00a0we reported\u00a0that in less than 1 month in 2015, so far a whopping 13 countries have proceeded with &#8220;surprising&#8221; rate cuts:\u00a0Singapore, Europe, Switzerland, Denmark, Canada, India, Turkey, Egypt, Romania, Peru, Albania, Uzbekistan and Pakistan. As of this morning, make [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1067,1400,431,534],"class_list":["post-5042","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-of-russia","tag-interest-rate-cut","tag-interest-rates","tag-monetary-policy"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/5042","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5042"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/5042\/revisions"}],"predecessor-version":[{"id":5043,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/5042\/revisions\/5043"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5042"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5042"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5042"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}