Russia Shocks The Markets: Fundamental And Algorithmic Analysis


  • Russia raises the key interest rate by 6.5%.
  • Is the crisis over for the US? Dollar is rising against the Yen, Ruble, and Euro.Flag-of-Russia-russia-13511405-1280-800
  • Why the recent talk of the US dollar being replaced as the reserve currency is unrealistic.
  • Future forecast for USD/RUB, USD/JPY and EUR/USD by I Know First State of the Art predictive algorithm.


Russia raises interest rates by 6.5% over night.

Bank of Russia’s Board of Directors decided to increase the key rate to 17% per annum on December 16th, 2014, the most drastic increase since the 1998 currency crisis. The increase will see the rate jump 6.5% from the previous rate of 10.5%. According to the bank the “decision was driven by the need to limit significantly increased devaluation and inflation risks”.

In a surprise move, according to the bank interest rate policy loans secured by non-marketable assets or guarantees for a period of 2-549 days (from 16 December, 2014) will have a floating interest rate. The rate will be derived from the key rate of the central bank plus 1.75 percentage points.

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