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Russia Wants Ruble Fix Without Wrecking Inflation Targeting

  • Ruble at highest since 2015 has officials considering options
  • Russia floated ruble in 2014 and still targets inflation at 4%
People walk past empty retail space on Tverskaya street in central Moscow, Russia.

People walk past empty retail space on Tverskaya street in central Moscow, Russia.

Source: AFP/Getty Images

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Russian officials are considering ways to keep the ruble on a tight leash without abandoning inflation targeting as they hunt for tools to tame the currency’s surge after sanctions ended the central bank’s ability to intervene directly.

Rather than removing a commitment to target price growth, officials would need a new mechanism as long as sanctions on the central bank are in place, according to people familiar with the matter. Among other options being considered is a further loosening of rules on currency operations for companies active abroad and more access to foreign exchange for households and businesses at home, they said.