Bank of Russia Makes Surprise Interest Rate Cut, Ruble Sinks

The Russian ruble plunged today after the Bank of Russia made a surprise decision to cut its key interest rate. The cut was rather significant though not as big as the interest rate hike in December.
The Russian central bank announced a reduction of its main interest rate from 17 percent to 15 percent. The bank explained its decision by “the shift in the balance of risks of accelerated consumer price growth and cooling economy”. The decision followed an  even bigger rate hike in December.
USD/RUB jumped from 68.7632 to 70.4169 as of 14:19 GMT today, rising as high as 72.0528 intraday.

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