CBR Decided to Follow Steps of the U.S. Fed and Keep its Benchmark rate Unchanged at 16 Percent

USDRUB exchange rate during trading hours on the Moscow Exchange did not explicitly react to the decision of the Central Bank of Russia (CBR) to keep the key rate at 16% as expected. CRB apparently followed suit after two days ago the U.S. Fed decided to keep its benchmark rate unchanged in a range of 5.25% to 5.5%. Similarly, Fed hinted on possibility of some three rate cuts later on in 2024, whereas CRB’s chairwoman Nabiullina said monetary loosening can be expected no earlier than 2H 2024.

The Russia’s financial regulator noted that inflationary pressures are “gradually easing but remain high”. The key rate remains unchanged since December 2023. At the last meeting, on February 16, the Central Bank also decided to keep the rate unchanged.

Prior to the publication of the regulator's decision, USDRUB rose by 0.78% to 92.78, while EURRUB advanced by a meager 0.21% to 100.29. The Chinese yuan exchange rate was at the level of 12.762 rubles (+0.26%).

After the U.S. currency accelerated its growth to 0.8% and was at 92.8 rubles, the European currency was at 100.32 rubles (+0.24%), and the Chinese currency was at 12.765 rubles (+0.28%).