from NIA:
The Central Bank of Russia held an emergency meeting early this morning and announced at 1AMEST (9AM in Russia) that it has raised Russia’s key benchmark interest rate by a shocking 650 basis points to 17%! This follows their Friday morning rate hike of 100 basis points to 10.5% – for a total interest rate increase of 750 basis points in three trading days!
We are sure Putin expected this morning’s rate increase to drive the USD/RUB exchange rate back below 60. Instead of stabilizing the Ruble – this morning’s dramatic rate hike has created a major panic and greatly accelerated the Ruble’s free-fall!
The USD/RUB exchange rate is up 11.68 today to 77.28, which equals a 15.1% single day decline in the Ruble’s purchasing power! Over just the last 48 hours, the Ruble has lost 26.2% of its purchasing power!
Read more about Putin in Panic as Emergency Rate Hike Backfires
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