USD/RUB: Focus on what the CBR thinks about real economy and financial sector – ING

The Central Bank of Russia (CBR) meets to set interest rates today. Economists at ING do not expect any change and will be closely watching comments about real economy and financial sector.

CBR to leave rates unchanged at 20%

“After its emergency hike to 20% to support the rouble, no change is expected today in policy settings. Instead, the focus will be on what the CBR thinks about the real economy and the financial sector.”

“The offshore USD/RUB is now being quoted at 102, while the onshore closed at 103.15 yesterday. Implied rouble yields through the FX swaps are being quoted markedly lower today, although we read that as a function of very illiquid markets rather than any dramatic improvement in market functioning.”