The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Additional reporting and writing by Kevin Allison. The authors are Reuters Breakingviews columnists. The opinions expressed are their own.
from Expert Zone:
(Any opinions expressed here are those of the author and not necessarily those of Thomson Reuters).
The Central Bank of Russia was successful for about two hours. Its overnight decision to hike the main interest rate from 10.5 percent to 17 percent initially shocked markets enough to arrest the rouble’s fall after the currency sank almost 12 percent on Dec. 15. But the Russian currency quickly resumed its slide, smashing record lows – as if the central bank hadn’t moved at all. That leaves policymakers with few sensible short-term options. Further out, only an end to the Ukrainian stand-off and related Western sanctions or sharply higher oil prices could soothe markets. Neither is likely to happen soon.