July OFZ yields reflect key rate decision
12 August 2021
News
In July, OFZ yields declined for all maturities except for 1 year. The sharp key rate hike confirmed that the Bank of Russia was prepared to take decisive measures to bring inflation back to the target.
For the first time since February 2020, there was a large-scale influx of non-residents in OFZs which helped the ruble strengthen in the second half of July.
In June—July, banks continued to raise their loan and deposit interest rates on the back of the Bank of Russia’s monetary policy and higher inflation.
More details are available in the new issue of the Banking Sector Liquidity and Financial Markets commentary.
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