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Bank of Russia Policies Collide as Ruble Plunge Curbs Easing

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For two months the Bank of Russia balanced goals described as confusing to investors and incompatible with its free float. The ruble’s plunge and a policy meeting in three days may force it to change tack.

The central bank may opt to cut its key interest rate by a quarter or a half point while suspending daily foreign-exchange purchases to rebuild reserves, according to Credit Suisse Group AG. Policy makers may halt the interventions with the ruble at 60 versus the dollar and pause their easing cycle if it weakens past 65, said Vladimir Miklashevsky, a strategist at Danske Bank A/S in Helsinki.