Russian Central Bank Hikes Interest Rate to 16% as Wartime Inflation Pressures Mount

Russia’s Central Bank (CBR) in a fight to arrest inflation and the fall of the plummeting Rouble hiked 100bps Friday morning to 16 percent, for the fifth consecutive time since summer to fight accelerating inflation. The Russian economy has been smashed but is said to be recovering on impacts from the invasion of Ukraine by scarcity and falling currency pushing up prices paid. The CBR has now raised its key rate by a cumulative 850 basis points since July, including … Continue reading “Russian Central Bank Hikes Interest Rate to 16% as Wartime Inflation Pressures Mount”

Russia’s Currency Slide Accelerates, Is the Ruble the New Turkish Lira?

Russia’s ruble’s selloff has picked up speed falling to its weakest level in over a year, through 100 against the US dollar for the first time since the week after Russia’s invasion of Ukraine. Less than a month ago Russia’s Central Bank (CBR) in a fight to arrest the plummeting Russian Ruble hiked rates by a more-than-expected 100 basis points. The bank pointed to rising inflationary pressures. The central bank raised its key rate to 8.5% which surprised analysts polled … Continue reading “Russia’s Currency Slide Accelerates, Is the Ruble the New Turkish Lira?”

Ruble Slide Continues After Russian Central Bank Raises Rates 100bps

Russia’s Central Bank (CBR) in a fight to arrest the plummeting Russian Ruble hiked rates by a more-than-expected 100 basis points. The bank pointed to rising inflationary pressures. The central bank raised its key rate to 8.5% surprised analysts polled by Reuters, with a 50-basis-point hike the consensus. The ruble was 0.4% weaker against the dollar at 90.62 and 0.2% weaker at 100.73 versus the euro. It also dropped 0.1% against the yuan to 12.59. The ruble also felt the … Continue reading “Ruble Slide Continues After Russian Central Bank Raises Rates 100bps”

Russian Stocks Plunge 44% in 2022

Russia’s MOEX Russia index closed Friday at 2,154, plunging 44% on the year. The ruble-based index reflected the fallout from the Russian invasion of Ukraine and consequent sanctions by Western countries. Russia’s action triggered investor’s exodus from oil and gas companies to McDonalds. The Moscow Exchange and the Central Bank of Russia both attempted to halt the selling, including closing the stock market for one month at the end of February, banning foreign investors from “unfriendly” countries, and prohibiting short … Continue reading “Russian Stocks Plunge 44% in 2022”

Ukraine Credit Rating Cut Further by S&P on Protracted War and Nation Reliant on Donations

Global ratings agency S&P cut Ukraine’s credit rating further Friday, in a move that was not unexpected and follows Moody’s earlier move in the week. It also assigned a negative outlook, saying risks from the military conflict could undermine the government’s ability to meet its debt obligations. The moves flow on from S&P and Fitch swiftly cutting Ukraine on default worries. Russia’s debt was cut to junk back then. The International Monetary Fund is exploring all options to aid Ukraine … Continue reading “Ukraine Credit Rating Cut Further by S&P on Protracted War and Nation Reliant on Donations”

Russian Central Bank Slashed Key Interest Rate to 11% as Inflation Pulls Back From 20-year highs on Rouble Strength

Russia’s Central Bank (CBR) in a fight to arrest the plummeting Russian economy smashed from impacts from the invasion of Ukraine. The CBR has now slashed its key rate by a cumulative 900 basis points since February, the rate was cut to 14% in April, weeks after an emergency rate increase to 20% triggered by Russia’s move to send tens of thousands of troops into Ukraine on Feb. 24 and the Rouble’s collapse. Since than capital controls have seen the … Continue reading “Russian Central Bank Slashed Key Interest Rate to 11% as Inflation Pulls Back From 20-year highs on Rouble Strength”

Russia Credit Rating Slashed to Junk by S&P and Fitch, Moody’s Issues Junk Warning

Credit rating slashed Russia’s credit rating Friday. S&P and Fitch lowering Russia’s rating to ‘junk’ status, Moody’s said it is putting it on review for a downgrade to junk. At the same time S&P and Fitch swiftly cut Ukraine on default worries. The International Monetary Fund is exploring all options to aid Ukraine with further financial support, said its head, Kristalina Georgieva. The Russian declaration of war on Ukraine has ravaged both countries finances and people with severe consequences for … Continue reading “Russia Credit Rating Slashed to Junk by S&P and Fitch, Moody’s Issues Junk Warning”

Russian Stocks & Rouble Freefall as Putin Recognizes Donbas Independence

Tensions between Russia and Ukraine continued to soar after Russia’s parliament appealed to Putin to formally recognize the Russian-backed separatist quasi-states Donetsk and Luhansk People’s Republics independence, in the Donbas region in Ukraine. Such a move Germany’s Scholz says would be a one-sided breach of Minsk format. This would torpedo the peace process and sent the MOEX Russia Index dumped as much as 14% with Rosneft (-18.3%), VTB (-17.3%) and Sberbank (-16.9%) hit. The Rouble shed over 2% on Monday. … Continue reading “Russian Stocks & Rouble Freefall as Putin Recognizes Donbas Independence”