Some Russian traders are already betting on a reduction in the biggest interest-rate increase in 16 years. While there are plenty of obstacles to lowering rates with inflation at a 3 1/2-year high and the ruble set for the biggest drop since 1998, derivatives used to predict future borrowing costs signal cuts are in store in the first quarter. Central bank Governor Elvira Nabiullina unexpectedly raised the benchmark to 17 percent from 10.5 percent two weeks ago, putting the economy at risk of a deeper recession to prop up the ruble.
Russia's War Against Ukraine
Bloomberg: Putin’s rate wish echoed by market stirs skeptics
Russia's Communist Party supporters dressed as white bears, symbol of pro-President party United Russia, saw a model of a one Russian ruble coin during a rally against ruble fall in exchange in front of the headquarters of the government in central Moscow on Dec. 22, 2014.
