- As expected, the Bank of Russia lifts its benchmark rate by 100 basis points to 10.5%. The ruble slipped another 0.7% to 55.24 per dollar.
- “This is a spineless decision,” says a Moscow fund manager. “If the central bank’s goal was to defend the ruble, it would’ve raised rates by 2-3 percentage points.”
- Russian policy makers are running out of options as about $80B spent defending the ruble and rate hikes have failed to stem the currency's depreciation (off 40% this year).
- In its statement, the central bank vows further increases in interest rates "in case of further aggravation of inflation risks."
- RSX -1.7% premarket
- ETFs: RSX, RUSL, RUSS, RSXJ, ERUS, RBL