As the Fed tightens, Russia launches its own QE programme | beyondbrics

As the Fed tightens, Russia launches its own QE programme | beyondbrics:

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As the US Federal Reserve threatens to bring its quantitative easing programme to an end – and with it one of the drivers of EM growth in recent years – Russia is preparing to introduce its own brand of QE in an attempt to keep growth going.

The central bank plans to auction loans collateralised by non-marketable assets in a bid to inject liquidity into the economy and cut the cost of funding for banks and borrowers.

The first auction is set for July 29 with an offering of Rbs500bn ($15.4bn). The one-year facility will have a floating interest rate initially set at 5.75 per cent – or 25 basis points above the central bank’s 1 day repo rate of 5.5 per cent. If the repo rate changes, so will the interest rate on the loans."

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