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Russian MPC takes a hawkish view as ruble falls

The Russian central bank kept its benchmark one-week repo rate on hold at 11.00% earlier today, but the markedly more hawkish tone of the accompanying statement makes it clear that rate cuts – which the MPC had hinted at recently – are off the cards. Equally, though, given the weakness of the economy we think that it will take a much sharper fall in oil prices and the ruble in order to trigger rate hikes.

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