The monthly interest rate-setting meeting of the CBR Board on 31 January was an important test of the seriousness of Russia’s post-crisis monetary policy, which has powerful implications for Russian asset valuations and investment strategies. The decision that came out of that meeting – leaving interest rates on hold while hiking banks’ compulsory reserve requirements – seems both strange and, in itself, negative. Final judgment, however, must be reserved for at least a couple of months....
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