It’s Oil, Stupid, as Russian Rates Powerless: Chart of the Day
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Investors are betting that the Bank of Russia will raise interest rates tomorrow after it exhausted all other options for stabilizing the ruble. A look at the oil price suggests that too may be futile.
The CHART OF THE DAY shows the ruble tracking the price of Brent crude over the past 12 months, with both falling 39 percent. The annotations show when the benchmark rate was increased with no notable response from the nation’s currency.