Russia’s central bank convenes extraordinary meeting after ruble collapse

There central bank of Russia will hold one meeting tomorrow, Tuesday 15 August 2023, for discuss the level of the reference rate, with the press release on the board’s decision to be released at 10:30 Moscow time. This was stated in a note by the Bank of Russia itself, which therefore decided to meet a month ahead of schedule after the ruble weakened sharply.

Earlier today, an economic adviser to President Vladimir Putin ha scolded the central bank after the ruble slipped above 100 against the dollarstating that “the main source of the weakening of the ruble and the acceleration of inflation is an accommodative monetary policy.”

The bank, whose key rate is currently 8.5%planned to hold its next rate meeting on September 15th. In the last meeting, on July 15, the rate was raised to 8.5% from the previous 7.5%, after it had been held at this level for 6 meetings, i.e. since the meeting of September 16, 2022 in which there it had been a cut.

The Russian currency trades at 100.75 on the dollar (+1.21%) ea 109.873 against the euro (+0.65%) at 4.55 pm Italian time, having recovered from the lows of the day following the announcement of the emergency central bank meeting. The ruble had fallen as low as 102.38 against the dollar and 111.804 against the euro.