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The central bank said it will hold an off-schedule meeting on Thursday to consider the level of its key interest rate, which the market took as a signal that it will cut the rate from 14% as inflationary expectations fall and the firmer rouble holds down price growth. At It fell 3% to trade at 60.32 versus the euro,
having opened at 57.10, its strongest since The rouble could lose some support from tight monetary policy if the central bank cuts the key rate. Raiffeisen Bank, CentroCreditBank and the head of the
financial committee in Expectations of an imminent rate cut, backed by the central bank's numerous statements that it sees room for lower rates, sparked a rally in OFZ government bonds. Yields on 10-year OFZs, which move inversely with their
prices, fell to 9.64%, the lowest since The rouble is the world's best-performing currency so far this year, supported by capital controls, new gas payment terms requiring conversion of foreign currency into roubles and a fall in imports. The currency's strength has raised concerns about the
negative impact on Now Russian assets could encounter downside pressure from the country's possible default on state debt even though Russian officials claim there is enough money to service obligations.
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