Connect with us

Popular World News

Russian rate hike above 100 bps unlikely in December -Nabiullina By Reuters

Israel to gradually end jobless benefits as economy recovers By Reuters


Russian rate hike above 100 bps unlikely in December -Nabiullina By Reuters

© Reuters. FILE PHOTO: Elvira Nabiullina, Governor of Russian Central Bank, attends a news conference in Moscow, Russia December 13, 2019. REUTERS/Shamil Zhumatov/File Photo

By Katya Golubkova MOSCOW (Reuters) – Russia’s central bank is unlikely to raise its key interest rate by more than 100 basis points in December as challenges facing the economy are less dramatic than in 2014, at the height of the Crimean crisis, Governor Elvira Nabiullina said on Thursday. The Bank of Russia has raised its key rate six times so far this year and is widely expected to hike again at its Dec. 17 meeting after inflation neared a six-year peak in November. “In the baseline scenario, we estimate the highest increase in the key rate as 100 (basis points),” Nabiullina said at the Reuters Next conference. Analysts polled by Reuters in late November had on average expected the central bank to raise the key rate by 50 basis points to 8% from 7.5% on Dec. 17. Nabiullina said it would be a harmful policy mistake to underestimate inflation risks but that borrowing costs were not expected to reach double-digit levels as they did in late 2014. A huge hike then from 10.5% to 17% came as the rouble fell to record lows and inflation accelerated after the West slapped sanctions on Russia for annexing Crimea from Ukraine.
“The current situation is of course much less dramatic than the one we had then. Still, we are very concerned with the level of inflation and inflation expectations in Russia,” Nabiullina said in an interview at the conference. To watch the Reuters  Next conference please register here
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Continue Reading
You may also like...
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


To Top
error: Content is protected !!