Yields go up in response to higher interest rates and tougher rhetoric from Bank of Russia
In September, the money market and the OFZ market recorded a rise in the yield curves for all maturities. One of the reasons behind this growth was that market participants had revised their expectations regarding the Bank of Russia key rate upwards. Moreover, yields on long-term government securities increased in most advanced economies.
Over the past three months, the ruble has been demonstrating moderate growth. In September, the ruble was among the few currencies that strengthened against the US dollar. At the peak, the ruble reached its high of late June 2021.
In August—September, banks continued to respond to the tightening of the Bank of Russia’s monetary policy raising progressively their interest rates on deposits and loans.
More details are available in the new issue of the Banking Sector Liquidity and Financial Markets commentary.