Russia cuts, even as investors leave | beyondbrics

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Further evidence that emerging market central banks are operating independently of the US Federal Reserve: Russia’s central bank held its policy interest rate unchanged at 8.25 per cent on Friday, in spite of evidence that foreign portfolio investors are taking their money out of the country.

Far from worrying about outflows, there had been speculation the bank would find room to cut interest rates at its first monetary policy meeting under Elvira Nabiullina (pictured), the new central bank governor who investors have feared would be less hawkish than her predecessor, Sergei Ignatiev.

But in spite of signs that inflation is on the way down, the bank opted for caution. "

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