After the fall of the ruble, the Russian central bank has now implemented a huge interest rate hike – from 8.5 to a whopping 12.0 percent. Indeed, the currency was stronger for a short while, before it started falling again soon after…
It is the largest rate hike since March 2022, after the base rate was raised even further immediately after the start of the Russian offensive war against Ukraine.
The policy rate is now higher than since the spring of 2022, after it was lowered again in the meantime. “The decision aims to mitigate price stability risks,” said the central bank’s statement on the interest rate decision. The currency watchdogs gave no indication of further rate hikes.
Short effect only
Following the announcement, the dollar traded at 95.89 rubles on the Moscow Stock Exchange, down 1.76 rubles from the previous day, while the euro settled at 104.78 rubles, down 2.27 rubles. However, at 12:30 local time, the dollar was back at 97.99 rubles and the euro at 107.2 rubles.
New sticker: “You bastard!”
Against this background, Russian society begins to boil. While videos of dissatisfied citizens complaining about declining living standards and poor prospects for the future are doing the rounds on the internet, a bizarre incident has occurred in the Siberian city of Surgut.
According to the news portal The Insider, the news ticker on the roof of a news agency has been manipulated. The red letters read: “100 rubles for a dollar. You bastard. Putin is an idiot and a thief.”
Foreign trade problems
In recent days, the ruble has come under pressure in the foreign exchange market. Experts say a deteriorating foreign trade balance has contributed to the recent depreciation of the Russian currency.
Source: Krone
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