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Russian Economy Sees 0.5 Percent Rate Cut

November 24th, 2009 · No Comments · Russia Economy

The Russian central bank cut its key interest rate by 0.5 percent to 8.75 percent in effort to stimulate the Russian economy according to Bloomberg.

Key drivers to the decision, aside from a faltering Russian economy, are to combat a flood of speculative capital and to stimulate bank lending.

The ruble has appreciated around 27 percent against the dollar since last February as high Russian interest rates continue to attract the carry trade.

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