Foreign investors aren’t taking the Bank of Russia’s “no” for an answer.
Despite the central bank’s pledge in September to hold interest rates at least through the end of the year, a bond-market anomaly still shows some remain confident that slowing inflation will allow for monetary easing to resume sooner rather than later.
Outside investors are pouring into the 5.4tn-rouble ($83bn) market, keeping yields below the 10% policy rate. With foreign ownership of local debt already near a record high, it’s a love affair bound to end in heartbreak, according to Schroder Investment Management.
“In a period of high volatility for emerging markets, …read more
Source: Gulf times
