Home World News MORNING BID-From Russia, with a rate hike

MORNING BID-From Russia, with a rate hike

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A look at the day ahead from Dhara Ranasinghe. All eyes today on Russia, where the central bank is expected to raise its 5% interest rate by as much as 50 basis points — its third rate rise in a row.

The rouble faces risks from geo-politics and more importantly, inflation is running above-target.

Russia, like many emerging markets, is seeking to get ahead of the Federal Reserve, which has stressed it will look past any temporary rise in inflation and keep stimulus in place. That message helped markets take in their stride Thursday’s blowout U.S. CPI print of 5%.

Despite that number, U.S. Treasury yields are at three-month lows and down 12 basis points this week — set for their biggest weekly drop in a year. Stock markets too are keeping their faith in the Fed for now, with MSCI’s world stock index up. European and U.S. equity futures are higher too.

UK markets have reason to cheer as well — Britain’s economic output in April was a record 27.6% larger…

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