The ruble falls to the bottom.  The Bank of Russia holds an extraordinary meeting

As we wrote in, in the money booster The stabilization measures initiated by the Russian Central Bank do not help. Last Wednesday, it announced that it would stop buying foreign currency domestically as part of a mechanism designed to insulate the economy from volatile commodity prices.

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See also: Interest rates go down before the election? Monetary Policy Committee Member: It would be a school error

Increase the interest rate

However, since the beginning of August, the ruble has fallen by about seven percent. According to Russian President Advisor Maxim Oreshkin, The main reason for the ruble’s weakness is accommodative monetary policy. Today, August 14, the dollar exchange rate on the Moscow Exchange has risen above 101 rubles, and the euro – above 110.4 rubles. At 17:37, the dollar fell below 99 rubles, and the euro equaled 108 rubles.

Alexander Isakov, a Russian economist, told Bloomberg that the Bank of Russia will have to raise interest rates by 50-100 basis points at its September 15 meeting to boost domestic savings and cut imports.

However, the decision to hold an extraordinary meeting was made much sooner. On Wednesday, the board will decide on the key interest rate.

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