On Monday, the Bank of Russia cut its one-week auction to 11.5% from 12.5%. Just six months ago, Russia’s central bank boosted its benchmark interest rate to 17% from 10.5%. However, rising inflation there is seen as a hurdle to additional easing. Last week, the Bank of Russia estimated June inflation to be 15.6%. [Russia Economy, ETFs on the Mend]
“Investors have been re-evaluating a rally in Russian assets that had been driven by relative calm in Ukraine and a less pessimistic outlook for the economy. Tension escalated last week as fighting erupted again in the eastern border region of the former Soviet republic,” reports Bloomberg.
RSX’s three-year standard deviation is 27.2%, according to Market Vectors data. That is nearly 1,500 basis points above the comparable metric on the MSCI Emerging Markets Index.
Market Vectors Russia ETF
