MOSCOW: The Russian rouble has weakened slightly against the US dollar and China’s yuan on Friday, reacting to the central bank’s hints that the key rate could still come down this year despite inflationary tax hikes in the new draft budget.
The central bank’s governor, Elvira Nabiullina, said on October 9 that there was still room for the key rate cut from the current level of 17 percent and that the decisions were not predetermined.
Last month, the central bank cut the key rate by 1 percentage point, which was smaller than anticipated. Many analysts expect it to pause additional cuts this year to mitigate an early-2026 inflation jump tied to the VAT hike.
By 1000 GMT, the rouble weakened by 0.1 percent to 81.25 to the dollar, according to over-the-counter trade data from LSEG. It weakened by 0.3 percent to 11.35 against the yuan at the Moscow Stock Exchange, where the yuan is the most traded foreign currency.
Comments
Comments are closed for this article.