The Russian ruble rose on Tuesday ahead of an extraordinary policy meeting called by the central bank to stem the currency’s depreciation.
Russia’s central bank called the meeting on Monday after the ruble tumbled past 101 per U.S. dollar as anxiety around the state of the economy and the impact of Western sanctions weighed heavy on the beleaguered currency.
The bank will discuss the level of its key interest rate, currently at 8.5%, when it meets Tuesday, with a decision to be published at 10:30 a.m. Moscow time, the central bank said.
That comes after President Vladimir Putin’s economic advisor on Monday blamed loose monetary policy for the currency’s rapid depreciation.
“The central bank has all the tools to normalise the situation in the near future,” said Maxim Oreshkin, Putin’s economic advisor. “It is in the interests of the Russian economy to have a strong rouble.”
— Karen Gilchrist
Ukrainian forces destroyed 16 of at least 28 Russian air and sea-based missiles launched overnight, Ukraine’s air defense forces said Tuesday on the Telegram messaging app.
“As a result of anti-aircraft combat by the forces and means of the Air Force, in cooperation with units of other components of the Defense Forces, the following were destroyed: 16 Kh-101/Kh-555 cruise missiles, Caliber,” the post said.
CNBC was unable to independently verify the claims.
— Karen Gilchrist
At least three people were killed and many more injured after overnight Russian airstrikes on Ukraine’s western region of Lviv and the northwestern region of Volyn.
The three were killed after a business enterprise in Lutsk was hit, Volyn’s regional governor said on the Telegram messaging app. The Volyn region borders NATO-member Poland to its west.
No casualties have so far been reported from the attack on Lviv, though scores of apartments and a kindergarten were destroyed, according to the city’s mayor Andriy Sadovyi.
“Fortunately, there were no casualties. Unfortunately, a lot of damage. The rocket flew into the yard of the kindergarten. More than a hundred apartments were damaged, more than 500 windows were broken, and a kindergarten was destroyed,” Sadovyi said on the Telegram messaging app.
Ukrainian media has reported that the attack on Lviv is the largest on the city since the war broke out. CNBC was unable to independently verify the claims.
Until last month, the Lviv region had been spared most Russia’s air attacks. However, seven people were killed in July when a missile hit a residential building.
— Karen Gilchrist
The headquarters of Russia’s central bank in Moscow on Feb. 28, 2022. The Bank of Russia cut rates six times in 2022, taking its key rate from 20% to 7.5%.
Bloomberg | Bloomberg | Getty Images
Russia’s central bank is to hold an extraordinary rate meeting on Tuesday after a steep fall in the ruble Monday.
Russia’s currency slid past 100 to the U.S. dollar earlier nearing a 17-month low, prompting Russian President Vladimir Putin’s economic advisor to blame loose monetary policy for the rapid depreciation.
Russia’s central bank then put out a statement in which it said a meeting will be held tomorrow “to consider the issue of the key rate level.” It said it would announce the board’s decision at 10:30 a.m. Moscow time.
The central bank’s key rate currently stands at 8.5%, having been raised 100 basis points last month. Then, the bank acknowledged “the possibility of a further increase in the key rate at the next meetings to stabilize inflation near 4% in 2024 and beyond.”
— Holly Ellyatt
A Russian Tupolev Tu-95 flies over Moscow during the general rehearsal for the Victory Day parade in Moscow, Russia, 07 May 2022. The Victory parade will take place on the Red Square on 09 May to commemorate the victory of the Soviet Union’s Red Army over Nazi-Germany in WWII. (Photo by Sefa Karacan/Anadolu Agency via Getty Images)
Anadolu Agency | Anadolu Agency | Getty Images
Britain said its Typhoon fighter jets intercepted two Russian maritime patrol bomber aircraft in international airspace north of Scotland on Monday, within NATO’s northern air policing area.
“Pilots launched in their Typhoon jets to intercept two Russian long-range bombers this morning, monitoring them as they passed north of the Shetland Islands, ready to counter any potential threat to UK territory,” British armed forces minister James Heappey said.
Russia’s defense ministry said earlier that Russian strategic bombers have carried out routine flights over international waters in the Arctic.
Russia regularly flies its Tu-160 and Tu-95’S long-range bombers, which are capable of carrying nuclear cruise missiles, over international waters.
“All the flights were carried out in strict compliance with international airspace regulations,” the ministry said, adding that the longest flight had lasted for more than seven hours.