XM does not provide services to residents of the United States of America.

Russian c.bank considered hike to 17% when holding rates this month



<html xmlns="http://www.w3.org/1999/xhtml"><head><title>UPDATE 1-Russian c.bank considered hike to 17% when holding rates this month</title></head><body>

Adds detail in paragraphs 3-6

MOSCOW, Feb 27 (Reuters) -All members of the Bank of Russia's board of directors agreed that inflation pressure was gradually easing as they held rates at 16% this month, the central bank said on Tuesday, but they also considered hiking borrowing costs even higher to 17%.

The bank on Feb. 16 opted to leave borrowing costs unchanged after five successive rate hikes since last summer, though it is still grappling with stubborn inflation pressure and said in a report it had discussed risks that may keep inflation high for a prolonged time.

Tuesday's report was a detailed summary of the board's discussions when choosing to hold rates, giving extra insight into the Bank of Russia's decision making.

The tight labour market and worker shortages remained one of the key discussion points, the bank said. Other subjects of discussion were inflationary risks to the Russian economy of a faster fall in oil prices as countries outside OPEC+ increase production and the impact of high budgetary spending.

The bank said it had considered raising rates by another 100 basis points, but added that some board members think the bank may be able to start lowering rates before the second half of the year, a more dovish signal.

All members agreed, the bank said, that inflation pressure was gradually easing.



Reporting by Alexander Marrow, Editing by William Maclean

</body></html>

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.