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Russia Cuts Interest Rate From 15% To 14%, Ruble Rises
Following the dramatic December surge in Russian interest rates when the Bank of Russia scrambled to preserve confidence in the then-plummeting currency and sent the interest rate to a whopping 17%, now that the oil price crash has stabilized it has been walking down this dramatic move, and after reducing rates by 2% on January 30 to 15%, moments ago the Bank of Russia once again cut rates this time by the expected 100 bps to 14%. The bank also said that more rate cuts are in the pipeline.
According to the WSJ, "Friday’s move is another sign of confidence from Russian authorities that the worst of the economic turmoil caused by Western sanctions and the plunge in the oil price could soon be over. But economists said it represents a risky bet that Russia’s still-fragile financial system could soon be on the mend."
The ruble firmed to 61.3 versus the dollar after the rate cut from levels of around 61.5 a dollar before the announcement.
As well as its key rate, the central bank cut its deposit rate to 13%, while the repo rate went down to 15% on the back of long-awaited slowdown in inflation.
All of the above means it is time to update the list of 24 central bank easings/rate cuts less than three months in 2015:
1. Jan. 1 UZBEKISTAN
Uzbekistan's central bank cuts its refinancing rate to 9 percent from 10 percent.
2. Jan. 7/Feb. 4 ROMANIA
Romania's central bank cuts its key interest rate by a total of 50 basis points, taking it to a new record low of 2.25 percent. Most analysts polled by Reuters had expected the latest cut.
3. Jan. 15 SWITZERLAND
The Swiss National Bank stuns markets by scrapping the franc's three-year-old exchange rate cap to the euro, leading to an unprecedented surge in the currency. This de facto tightening, however, is in part offset by a cut in the interest rate on certain sight deposit account balances by 0.5 percentage points to -0.75 percent.
4. Jan. 15 EGYPT
Egypt's central bank makes a surprise 50 basis point cut in its main interest rates, reducing the overnight deposit and lending rates to 8.75 and 9.75 percent, respectively.
5. Jan. 16 PERU
Peru's central bank surprises the market with a cut in its benchmark interest rate to 3.25 percent from 3.5 percent after the country posts its worst monthly economic expansion since 2009.
6. Jan. 20 TURKEY
Turkey's central bank lowers its main interest rate, but draws heavy criticism from government ministers who say the 50 basis point cut, five months before a parliamentary election, is not enough to support growth.
7. Jan. 21 CANADA
The Bank of Canada shocks markets by cutting interest rates to 0.75 percent from 1 percent, where it had been since September 2010, ending the longest period of unchanged rates in Canada since 1950.
8. Jan. 22 EUROPEAN CENTRAL BANK
The ECB launches a government bond-buying programme which will pump over a trillion euros into a sagging economy starting in March and running through to September next year, and perhaps beyond.
9. Jan. 24 PAKISTAN
Pakistan's central bank cuts its key discount rate to 8.5 percent from 9.5 percent, citing lower inflationary pressure due to falling global oil prices. Central Bank Governor Ashraf Wathra says the new rate will be in place for two months, until the next central bank meeting to discuss further policy.
10. Jan. 28 SINGAPORE
The Monetary Authority of Singapore unexpectedly eases policy, saying in an unscheduled policy statement that it will reduce the slope of its policy band for the Singapore dollar because the inflation outlook has "shifted significantly" since its last review in October 2014.
11. Jan. 28 ALBANIA
Albania's central bank cuts its benchmark interest rate to a record low 2 percent. This follows three rate cuts last year, the most recent in November.
12. Jan. 30 RUSSIA
Russia's central bank unexpectedly cuts its one-week minimum auction repo rate by two percentage points to 15 percent, a little over a month after raising it by 6.5 points to 17 percent, as fears of recession mount following the fall in global oil prices and Western sanctions over the Ukraine crisis.
13. Feb. 3 AUSTRALIA
The Reserve Bank of Australia cuts its cash rate to an all-time low of 2.25 percent, seeking to spur a sluggish economy while keeping downward pressure on the local dollar.
14. Jan. 19/22/29/Feb. 5 DENMARK
The Danish central bank cuts interest rates a remarkable four times in less than three weeks, and intervenes regularly in the currency market to keep the crown within the narrow range of its peg to the euro.
15. Feb. 13 SWEDEN
Sweden's central bank cut its key repo rate to -0.1 percent from zero where it had been since October, and said it would buy 10 billion Swedish crowns worth of bonds
16. February 17, INDONESIA
Indonesia’s central bank unexpectedly cut its main interest rate for the first time in three years
17. February 18, BOTSWANA
The Bank of Botswana reduced its benchmark interest rate for the first time in more than a year to help support the economy as inflation pressures ease.
The rate was cut by 1 percentage point to 6.5 percent, the first adjustment since Oct. 2013, the central bank said in an e-mailed statement on Wednesday.
18. February 23, ISRAEL
The Bank of Israel reduced its interest rate by 0.15 percentage points, to 0.10 percent in order to stimulate a return of the inflation rate to within the price stability target of 1–3 percent a year over the next twelve months, and to support growth while maintaining financial stability.
19. Feb. 4/28 CHINA
China's central bank makes a system-wide cut to bank reserve requirements -- its first in more than two years -- to unleash a flood of liquidity to fight off economic slowdown and looming deflation. On Feb. 28, the People's Bank of China cut its interest rate by 25 bps, when it lowered its one-year lending rate to 5.35% from 5.6% and its one-year deposit rate to 2.5% from 2.75%. It also said it would raise the maximum interest rate on bank deposits to 130% of the benchmark rate from 120%. On February 28 China's Central Bank lowered by a quarter percentage point both the benchmark one-year loan rate, to 5.35%, and the one-year deposit rate, to 2.5%. "Deflationary risk and the property market slowdown are two main reasons for the rate cut this time."
20. Jan. 15, March 3, INDIA
The Reserve Bank of India surprises markets with a 25 basis point cut in rates to 7.75 percent and signals it could lower them further, amid signs of cooling inflation and growth struggling to recover from its weakest levels since the 1980s. Then on March 3, it followed through on its promise and indeed cut rates one more time, this time to 7.50%
21. March 4, POLAND
The Monetary Policy Council lowered its benchmark seven-day reference rate by 50 basis points to 1.5 percent, matching the prediction of 11 of 36 economists in a Bloomberg survey. Twenty-three analysts forecast a 25 basis-point reduction, while two predicted no change.
22. March 11, THAILAND
The Southeast Asian country -- a onetime export powerhouse that’s seen its manufacturing mojo dim somewhat in recent years amid historic flooding and political infighting -- lowered its main rate to 1.75 percent.
23. March 11, SOUTH KOREA
In a surprise move, the Bank of Korea cut its policy rate from 2.00% to a record low 1.75%.
24. March 12, SERBIA
Serbia's central bank cut its benchmark interest rate for the first time since November to 7.5%, moving to ward off deflation and support economic growth on the back of a new IMF loan deal. The cut - by 50 basis points - was in line with the expectations
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I can't stand this.....is Putin dead or not?
14%.....that seems like a lot!
Alive - much to the chagrin of our Neocon warmongers:
Russian TV shows Putin meeting Supreme Court headMOSCOW Fri Mar 13, 2015 6:26am EDT
http://www.reuters.com/article/2015/03/13/us-russia-crisis-putin-meeting...
Heh heh.....I knew Vlad would pull through.
Nuland must be super pissed.
But the push for war with Putin continues:
Danger of war with Russia grows as US sends military equipement to Ukraine
By Johannes Stern and Alex Lantier13 March 2015
Washington has begun delivering military hardware to Ukraine as part of NATO’s ongoing anti-Russian military build-up in eastern Europe, escalating the risk of all-out war between the NATO alliance and Russia, a nuclear-armed power.
The Obama administration announced on Wednesday that it would transfer 30 armored Humvees and 200 unarmored Humvees, as well as $75 million in equipment, including reconnaissance drones, radios and military ambulances. The US Congress has also prepared legislation to arm the Kiev regime with $3 billion in lethal weaponry.
Washington is at the same time deploying 3,000 heavily armed troops to the Baltic republics, near the Russian metropolis of St. Petersburg. Their 750 Abrams main battle tanks, Bradley armored personnel carriers, and other vehicles are slated to remain behind after the US troops leave. This handover is aimed at “showing our determination to stand together” against Russian President Vladimir Putin, US Major General John O’Connor said in the Latvian capital, Riga.
http://www.wsws.org/en/articles/2015/03/13/nato-m13.html
This country depends way too much on one person.
Do those cuts end up with a Dr. visit at the end of the day?
Yes totalitarian countries are usually like that.
A simple question of pre-positioning equipment in likely trouble spots. If things heat up, the troops fly in, get in their vehicels and they are ready to rumble.right away.
I'm not sure why Russian troops on the border of NATO territory are no threat to Europe but a far smaller contingent of Allied forces on the border of Russia represent some kind of deep plot to restage Barbarossa.
Having no troops ready to go would actually be more unstable since it would represent a temptation for a quick "gas up and run till your tanks are dry" strike. Russia says it is awake and watching. NATO says it is awake and watching. Better for both sides to know what the real score is.
I believe everything I see on Russian TV.
I hear Brian Williams may be heading to RT.....class the joint up a little bit.
More than I do the BBC
can they not use the phrase 'cuts in the pipeline'? It tends to send the Kiev neo-nazi generals on a rampage
Yeah there was a line outside the Dr. office last time I drove by.
Gallactic QE for the entire universe. Liquidity to infinity and beyond!
https://www.youtube.com/watch?v=gzwyZI_DKjM
One can only hope. However, if he's passed, there's going to be hell to pay for the Zero that allowed him to shed this mortal coil.
After being fired from my old job 8 months ago, i've had luck to learn about this great company online that was a lifesaver for me... They offer online home-based work. My last month payment after working with them for 4 months was 16ooo bucks... Great thing about it was that only requirement for the job is basic typing and reliable internet...If you think this could be for you then find out more here...
www.globe-report.com
Since Lehman - ?
Since when ??
Remember when Dick Fuld and Ken Lay were smoking dope?
Anything?
Smartest guys in the room......smokin dope. I've got it all on DVD.
Desperate times require desperate measures.
I think all CB's should drop rates to zero or negitive zero so we can be completely awash in a sea of paper!
Then send out 10 or 20 million dollar checks to everyone, that would help get the economy back on solid ground!
100 year mortgages and 20 year car loans!
Fixed!
How come Werfuktagain isn't on that list?
can I just enquire... were there really 21 preceeding 'baby eating dingos' to force you to use #22 ??
http://www.shanghaidaily.com/business/economy/IMF-in-talks-over-yuan-as-...
gives one pause for thought as to whether china is going to join the gold suppressors!
But then in joining them, what on earth aside from WW3 could wipe out the debt that is knobbling any further prospects of growth...
This fiftieth year you shall make sacred by proclaiming liberty in the land for all its inhabitants. It shall be a jubilee for you, when every one of you shall return to his own property, every one to his own family estate. Leviticus 25:10
You know we took an awful lot of land from those Indians, then sent um walkin to a tornado infested desert hillside, they didn't much like that, but yours is good news to them.
Yes, they were force marched from the Florida swamp to one of the richest oilfields in the country. After that, they all sold cheap cigarettes and opened casinos to get even with the white eyes.
Q 1 China will play until they have it all. Q 2 gold, silver and other hard productive assets. If the intrinsic value of paper is zero what is debt denominated in paper worth ? Zero Hedge is a brilliant name for a site, wonder who came up with it. Ur comments give me a good laugh when i need it - thanks !
How do we get in on the 14% rates?
Just buy in at the right time, and let the lord do the rest.
How do we get in on the 14% rates?
When we decide to commit suicide.
wadda think the banks would be paying on savings accounts now if the game was not rigged..
at least 15% if not more, but no we get zirp..think about it. russia is more real and has interest rates that somewhat reflect reality, usa not so much.
Vlad needs a few flaccid, compliant Americans willing to go to the judo mat for him in an astonishing YouTube display of his machismo and virility.
Do you have what it takes?
Please step up, Zeroes, Vlad's counting on you.
Yes, the Ruble has "risen" -1% against the dollar in the past 36 or so hours.