Four days ago announced a rise in interest rates from 9.5% to … – RTVE

Four days ago announced a rise in interest rates from 9.5% to … – RTVE

RTVE.es / AGENCIES

The Bank Russia has agreed raise interest rates from 10.5% to 17% “ limit the significant depreciation” of the ruble and the “risks” that will trigger the inflation. This was announced late Monday the central bank through a statement, only four days after they agreed to further increase of a percentage point from 9.5% to 10.5 %.

“This decision intended to limit the considerable depreciation of the ruble and inflation risk,” said the supervisor in the note confirming the rise of the guys a total of 11.5 percentage points so far this year .

At dawn on Tuesday, the central bank has also increased the maximum amount of foreign currency it lends to banks -a Russians through its foreign exchange auctions repo by 28 days- from 1,500 million (1,200 million euros) to 5,000 million dollars ( 4,018 million euros).

In addition, in order to enhance the effectiveness of monetary policy, loans secured by non-marketable assets or guarantees of two to 549 days They pay at a rate of Variable interest .

Russia’s economy depends heavily on sales oil and gas , which represent at least two thirds of its exports , so that dependence could eventually stifle economic growth amid market turmoil linked to the crisis in Ukraine, and now, at a price of oil that continues to go down.

The ruble mark lows

The Russian ruble depreciated Monday 8% against the dollar marking new lows which was affected by low international oil prices of around 60 dollars and Barrill of Brent said, so that every euro was trading at 78.8 rubles and 63.4 rubles to the dollar.

So, the Russian currency has devalued well so far this year almost 49% against the dollar and 42% against the euro .

The currency depreciation has precipitated the collapse of the Moscow Stock Exchange, which closed this day with a drop of 10%. The collapse has been widespread in European stock markets like the one in Madrid, where the IBEX has yielded 2.38% – while the London Stock Exchange closed with a decline of 1.87%, also affected by the decline of oil prices.

Indeed, on Monday the Central Bank of Russia was set at $ 80 per barrel its forecast for the next triennium and recognized that to keep the price around $ 60 , the Russian economy shrink to 4.7% .

Good received by investors

In the words former Minister of Russian Finance Alexei Kudrin, the depreciation of the currency is a product of the lack of confidence in the economic policies of Govern or. This situation poses a major challenge for President, Vladimir Putin, whose popularity is based on providing stability and prosperity to the country.

So far, investors have received a positive measure. “This is definitely a step in the right direction ” said Reuters chief investment to emerging markets UBS, Jorge Mariscal, who pointed out that this demonstrates a real concern about the speed at currency depreciation.

Since the summer, Russia suffers a strong capital flight due, mainly, to the sanctions that restrict access of Russian companies to international markets as well as to the credibility problems of the country among foreign investors.