Ruble Debacle After Wagner Mutiny Cues Up Russia’s Rate Hike
- Central bank set for first increase since invasion aftermath
- Weaker currency adds pressure on inflation amid war spillovers
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Russia is poised for its first interest-rate hike since emergency measures taken after the invasion of Ukraine almost 17 months ago, as a stretch of steep currency depreciation forces the central bank’s hand.
A failed mutiny in June has thrust the ruble into the spotlight by adding to pressure from a deterioration in foreign trade that’s turned it into one of the worst performers this year in emerging markets against the dollar. Three-month implied volatility for the currency, a gauge of anticipated moves, is also the world’s highest.