Bank Rossii Keeps Rates Steady, Does Not Help Ruble
The Russian ruble slid today as crude oil, Russia’s main export, fell amid concerns about the global economic slowdown. The currency weakened even after the central bank refrained from lowering interest rates for the eight month.
According to the Bank of Russia estimates, gross output remains close to its potential level, which implies an absence of significant demand-pull price pressures. Production in manufacturing in the second quarter of the year was high, while consumer and producer confidence indicators remained fairly strong.
Russia is unique among emerging economies, being able to hold the borrowing costs while others had to cut them. That did not help the Russian currency, though.
USD/RUB advanced from 31.7545 to 31.8135 as of 14:35 GMT today.
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Earlier News About the Russian Ruble:
- Ruble Rises as Oil Prices Advance & Borrowing Costs Fall (2012-08-06)
- Ruble Falls as Market Sentiment Poor After ECB Policy Decision (2012-08-03)
- Ruble Falls as Optimism Retreats from FX Market (2012-07-30)
- Ruble Drops as Yield on Russian Debt Rises (2012-07-23)
- Ruble Falls, Pares Decline (2012-07-09)