Russia’s Nabiullina - Higher US rates are good

Elvira Nabiullina, Governor of the Central Bank of Russia, says that rising US rates are good and other central banks should move towards more normal policy rates. 

She adds, “Russia, where interest rates are stubbornly high at 9%, would remain on the easing path’. 

Key points

Russia can move towards its ‘neutral’ interest rate target of between 2.5% to 3% after inflation gets to target of 4%

We observed that the reaction of oil markets to this prolongation of the OPEC agreement is a bit different to what the markets expected, and the oil price is a bit lower than many expected as a result of this OPEC agreement

We see many medium-term factors that are absolutely unclear about oil markets