Russian Central Bank 2018

The Russian Central Bank unexpectedly raised interest rates on September 14, 2018. The decision was taken for the first time since 2014 and aimed to offset the risk of inflation associated with a currency, such as the ruble, which is now falling.
The Official Discount Rate was raised to 7.5% from 7.25%, thereby circumventing the forecasts of the same Russian economists who considered out of discussione a Bank of Russia's economic policy maneuver.

RUSSIAN CENTRAL BANK INTEREST RAISE IN 2018


First time since 2004

Only two out of forty-two economists, interviewed by Bloomberg, had indeed predicted the rise.
The Governor of the Central Bank, Elvira Nabiullina, held a press conference at 3 pm on 14 September 2018 to declare the increase.
The decision was decided by her, despite the appeals of the main Russian government officials.
The decision was also adopted due to inflation expectations among Russian families, which the central bank defined as a "pillar" of its rate decisions.
The rate maneuver was combined with the simultaneous decision by the Bank to suspend sales of rubles to buy foreign currency.

Both measures intervene after threats of new US sanctions destabilized the markets.

Source: The Moscow Times, ed. Sept. 14 2018 - 15:09

TOPICS

  • Few Russianj economists had indeed predicted the rise.
  • The increase was declared on 14 September 2018.
  • The decision came despite the appeals of the main Russian government officials.
  • The decision protected Russian families, which the central bank defined as a "pillar" of its rate decisions.
  • The rate increase was combined with the simultaneous suspension of sales of rubles.

CONCLUSION

Russia in increasing its importance in the world panorama of economies, subject to financial markets interference.

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