Russia’s local bonds rallied for a fourth day before the central bank meets to discuss rates.
Bonds due in February 2027 rose, lowering the yield two basis points. The ruble weakened 0.1 percent against the central bank’s dollar-euro basket to 34.7609 by 11.17 a.m. in Moscow. It was little changed against the dollar at 30.1640.
Bank Rossii will hold the refinancing rate at 8.25 percent for a fifth month at tomorrow’s meeting in Moscow, according to a Bloomberg survey. Oil, Russia’s biggest export, slid 0.1 percent in New York trading to $95.61 per barrel.
The central bank’s “tone will become more dovish, focusing on growth risks rather than on inflation,” when it publishes the results of the board’s meeting, VTB Capital analysts Maxim Oreshkin and Daria Isakova said in an e-mailed note.
Russia, the largest emerging nation to raise rates in 2012, is facing increasing government pressure to ease monetary policy after last year’s economic growth slowed to 3.4 percent, the weakest since a 2009 recession. Consumer price inflation rose to 7.1 percent in January while Bank Rossii is targeting a rate of 5 percent to 6 percent in 2013.
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