Russia's central bank surprises with rate hike
Expectations were for the central bank to hold the key rate steady at 7.25%. This is more of a preemptive move by the central bank in the wake of the rouble's depreciation over the past few months as US sanctions weigh on the currency.
The central bank also says it will consider the necessity of further rate increases by taking into account inflation and economic dynamics as well as risks posed by external conditions. Of note, they also made the decision to suspend foreign currency purchases until the end of 2018. This was a move made earlier last month which was supposed to last until the end of September only.
The rouble is now the best performing emerging market currency on the day, up 0.6% against the dollar:
