Market Opportunity: Russia and the RUB.
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This article is originally referred from AvaTrade News.
Russia’s No. 1 market mover ahead!
Central Bank of Russia Interest Rate Decision on Friday, February 9th, 2018 at 10:30 GMT
2 months ago, in December, the Central Bank of Russia has surprised traders, cutting its key interest rates of 50 base points to 7.75% from 8.25%, sending the ruble lower immediately after the announcement.
The Central Bank of Russia’s Director of the Monetary Policy Department, Igor Dmitriev, stated last month that the Russian central bank is considering lowering rates by additional 25 base points at February’s meeting.
What do you think?
Will the Bank of Russia cut interest rates? Or will the RUB take traders by surprise and rally?
Insights of the Bank of Russia’s Interest Rate Decision
The Russian economy grew 1.5% last year, at a lower than expected pace.
Moreover, inflation is due to increase from the current level of 2.5% to the 4% target by the end of the year.
Nonetheless, the current low levels of inflation allow the Central Bank to lower rates, boosting consumer demand in readiness for the presidential election in March.
The decision on where to set interest rates depends mostly on growth outlook and inflation.
A higher than expected rate is positive/bullish for the Russian ruble (RUB), while a lower than expected rate is negative/bearish for the currency.
Original Source: AvaTrade News