Russian currency on year high: Fed leads rubles from the valley of tears – n-tv.de NEWS

 Economy
 

 Friday, 18 March 2016

 
 
 

 
 Russia’s ailing currency gets support from its own central bank. Contrary to the demands of politics and economy they omitted another rate cut. The ruble carries the at the highest level in three months.
 

 
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A strong push, the Russian central bank, where the ruble, after having the interest rate is not lowered further, but left unchanged at 11 percent. From the early to mid 2015, the prime rate was gradually reduced from 17 per cent to the current level to engage with cheaper money the crisis-hit economy in recession under the arms. For comparison: In the euro zone the key rate is at zero percent

The fact that the interest rate is not lowered further, is also due to the persistently high inflation.. “Inflation risks remain high,” said the central bank. The inflation rate is only the end of 2017 are again within the target range of four percent. If the base rate further reduced, which could put the domestic currency ruble devaluation pressure.

The ruble rose then against the dollar to its highest level in three months. The dollar cost 67.69 rubles to 68.74 rubles a day high against the decision of the central bank. Already in the days before several messages had supported the ruble: Especially the recovered oil prices the Russian currency was last maintenance

Since the end of January more than 15 percent of its value recovered

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the end of January, the ruble had ever fallen against the dollar to the lowest level so far. Since then put the Russian currency, supported by rising oil prices, more than 15 percent. The continued low compared to previous years the price of oil does – in addition to the sentence imposed in the wake of the Ukraine crisis punitive of the West -. The Russian economy hard to create

companies and politicians in Russia have been demanding for a long time a further easing monetary policy to help the ailing economy. But regardless of these calls, the central bank held the fifth session in a row on its interest rate policy fixed.

The majority of analysts had expected an unchanged interest rates after the monetary authorities had warned that they would be prepared to raise interest rates, should this is necessary for the fight against stubbornly high inflation expectations.

  Source: n-tv.de
 

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