Forward-rate agreements are signaling 23 basis points of increases in borrowing costs during the next three months. The Bank of Russia has lowered its key interest rate by a cumulative six percentage points to 11 percent in five steps this year.
The ruble has depreciated about 43 percent against the dollar in the past 12 months, the worst performance globally, according to data compiled by Bloomberg. It traded 1.7 percent stronger at 62.9620 versus the dollar as of 8:16 p.m. in Moscow.
The central bank said last month that it may worsen its forecast for a 3.2 percent contraction this year after domestic demand fared worse than anticipated in the first six months. Russia will endure a two-year economic contraction if crude prices remain at $60 through 2016, including a 1.2 percent slump next year, according to the central bank. ∞∞∞∞∞ SEE MORE ∞∞∞∞∞