Russia Defends Ruble With Biggest Rate Rise Since 1998 - Bloomberg
INDEXCF Quote - MICEX Index - Bloomberg
They are predicting severe recession
Quote:
[R]ussia derives about 50 percent of its budget revenue from oil and natural gas taxes. As much as a quarter of gross domestic product is linked to the energy industry, Moody’s Investors Service estimated in a Dec. 9 report.
The economy may shrink 4.5 percent to 4.7 percent next year, the most since 2009, if oil averages $60 a barrel under a “stress scenario,” the central bank said yesterday. Net capital outflow may reach $134 billion this year, more than double last year’s total. ...
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The MICEX seems to care less about this rate rise. When there was economic turmoil in the USA -- fall 2007 and early 2008, the stock and bond exchanges had a severe contraction. Maybe, the credit market in Ruble denominations means little to big business in Russia?