Economics
Ruble’s Slump Kills Hopes of Further Rate Cuts in Russia
- Forward-rate agreements show rates unchanged for three months
- Analysts at Macro Advisory dubbed the ruble ‘currency of fear’
A pedestrian walks past the headquarters of Bank Rossii, Russia's central bank, in Moscow, Russia, on Feb. 7.
Photographer: Andrey Rudakov/BloombergThis article is for subscribers only.
Traders are betting that the Bank of Russia will put interest rate cuts on hold after the ruble’s 8% slump against the dollar in the past three months.
Forward-rate agreements, which have been predicting more monetary easing for most of this year, are now indicating that rates will stay at 4.25% for the rest of the quarter even as inflation remained below the central bank’s target for a 12th month.