Rouble weakens about 10% against the dollar in volatile trade to a two-week low
A vendor counts Russian roubles at a market in Omsk, Russia, February 18 2022. Picture: ALEXEY MALGAVKO/REUTERS
At a banking conference in Moscow, governor Elvira Nabiullina said the central bank had prevented an inflation spiral and would lower its 2022 inflation forecast from 18%-23%, reiterating the bank’s signal that it may cut rates further at its next meeting on June 10. The rouble started falling from those multiyear highs on Wednesday as the market anticipated the bank’s decision. It extended losses as Nabiullina delivered the bank’s dovish message on Thursday and continued falling steadily throughout the session.
“Today’s key rate cut, coupled with another round of policy easing expected on June 10, will put more noticeable pressure on the rouble exchange rate,” Veles Capital analysts said in a note. He also said he expected to see a further reduction in mandatory forex sales by export-focused companies.
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