Russia's c.bank says minority on board favoured even bigger rate rise last month
Corrects to last month from last week in headline and first paragraph, and to Oct. 25 from last Friday in 5th paragraph
MOSCOW, Nov 6 (Reuters) -A minority of Russian central bank board members favoured an even bigger rate hike at last month's meeting where the majority voted to raise the key rate by 200 basis points to 21%, a summary of the discussion showed on Wednesday.
Those who were in favour of raising the rate to 22% wanted to reduce inflation faster and get insurance against new pro-inflationary risks that remain high, the bank said.
But the majority decided that such a sharp rate hike could lead to volatility in the markets, it added. The possibility of setting the rate at 20% was also considered.
Russian inflation will hit 8.1% at the end of the year, above the current government forecast, while the central bank is set to hike its key rate by another 100 basis points in December, according to the median of a Reuters poll of 14 analysts.
The Oct. 25 move took the key interest rate to its highest level since the early years of President Vladimir Putin's rule when Russia was recovering from the chaos that followed the collapse of the Soviet Union.
Reporting by Elena Fabrichnaya; Writing by Anastasia Teterevleva;
Editing by Mark Trevelyan
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
