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Inflation Slowdown in Russia: What It Means for Investors?
... leading to a decrease in consumer demand and inflation rates. This allows the Central Bank to control price growth and protect the ruble from external factors.
Growth of Exports and Import Restrictions.
The reduction in import volumes due to high interest rates decreases pressure on the domestic market. Russian exporters have, on the contrary, increased currency sales by 21% in October compared to September, which supports ruble stability and reduces inflationary pressure from currency fluctuations.
Increased ...
IPO in Russia at 21% rate: what to expect in the near future?
... capitalization of the stock market, which requires a significant increase in stock market activity and an increase in the number of IPOs. However, in the current conditions, this appears to be an extremely difficult task.
Reduced liquidity. In a high rate environment, many investors try to avoid stocks, which leads to a decrease in liquidity in the market. This, in turn, makes it difficult to conduct successful IPOs and leads to a decrease in the value of shares of even large companies. Increasing market capitalization in such conditions will require significant incentives,...
Economic News: Saturday, July 26, 2025 - CBRF Reduces Rate, Wall Street Hits New Highs
... ruble weakened slightly over the week: the official exchange rate of the dollar set by the Central Bank of Russia for the weekend rose to ~79.55 ₽ (from ~78.86 ₽ the previous week). Pressure on the ruble intensified after the CBR lowered the key rate, as well as due to importers' demand for foreign currency against the backdrop of a recovery in imports. Other CIS currencies also showed decreased dynamics: for instance, the Kazakh tenge is holding around 542 KZT per $1, close to multi-month lows. The head of the National Bank of Kazakhstan stated that the current level of the tenge is fundamentally undervalued; however, there is no obvious ...
Economic News: Sunday, July 27, 2025 – US and EU Close to a Trade Agreement, Markets Await Signals from the Fed
... comments: the founder and CEO of Tesla warned of “several tough quarters” ahead due to the reduction of government subsidies for electric vehicles in the US and intensifying competition. These statements heightened concerns about Tesla's future growth rates. Following the report’s release, the company's shares fell by over 8%, and year-to-date, Tesla's market capitalization has decreased by approximately a quarter, reflecting investor caution in the EV (Electric Vehicles) sector.
Intel
– The semiconductor industry continues to face difficulties, as evidenced by the report from the largest American chipmaker. For Q2, Intel ...
What Factors Influence the Central Bank's Key Rate?
... increase the rate to prevent excessive price growth.
8. Consumer Activity and Business Confidence
Consumer and business behaviors are essential indicators for the Central Bank. If consumer activity declines and companies reduce spending, it can lead to decreased demand and economic slowdown. In these situations, the Central Bank may lower the rate to make credit more accessible and encourage consumption. Conversely, if consumption and business confidence increase, the Central Bank may raise rates to avoid overheating the economy.
The key rate of the Central Bank is influenced by numerous factors ...