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Russian rate cut sends Rouble running
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Russia’s central bank has lowered its main interest rate unexpectedly as recession concerns overtake efforts to stabilise the rouble amid runaway inflation.
The key rate was cut to 15% from 17%. The rouble weakened, breaching the psychological 70 mark against USD after the announcement.
Worsening tensions in Ukraine are prompting threats of stiffer EU and US sanctions against Russia just as oil heads for its seventh straight monthly decline, forcing the economy of the world’s largest energy exporter to the brink of recession.
Russia’s gross domestic product may shrink 3.2% in 1H 2015.
The key rate was cut to 15% from 17%. The rouble weakened, breaching the psychological 70 mark against USD after the announcement.
Worsening tensions in Ukraine are prompting threats of stiffer EU and US sanctions against Russia just as oil heads for its seventh straight monthly decline, forcing the economy of the world’s largest energy exporter to the brink of recession.
Russia’s gross domestic product may shrink 3.2% in 1H 2015.