Russia’s central bank is adding 2 trillion rubles ($58 billion) to a program aimed at tackling a cash shortage among lenders that has worsened this year as bond markets cut off borrowers.
Russia’s central bank, which has raised borrowing costs twice in 2014, kept its benchmark interest rate unchanged with inflation set to peak this month and the ruble recovering from a five-year low.
Traders are scaling back bets for lower interest rates in Russia over the next three months after the central bank warned that inflation threatens to drive borrowing costs higher.
"The nature of the slowdown in economic growth is mainly structural."
- Elvira Nabiullina on Jun 15, 2014