News just breaking from the Central Bank of the Russian Federation but as expected

  • effective 3 August
  • says it will further decide on its key rate depending on the balance of inflation risks and risks of economy cooling
  • annual inflation will fall below 7% in July 2016 and reach target of 4% in 2017
  • consumer price growth will continue to slow amid slack domestic demand
  • as of 27 July annual consumer price growth rate rose to 15.8% vs 15.3% in June
  • output forecast may be revised downwards
  • economic situation in Russia will further depend on the dynamics of world energy prices and ability to adapt to external shocks
  • structural factors continue to hamper the economic growth
  • output contraction is having cyclical nature

Full CBR statement here

Next meeting set for 11 Sept

Any surprise that the US and UK are in no rush to hike rates, or am I overstating the fallout ?

USDRUB flies to 60.55 from a line in the sand around 59.70