IMF says Bank of Russia has most erratic monetary policy

My FX Forum

Staff member
The International Monetary Fund (IMF) assessed the central banks of various countries in one of its annual reports and recognized Russia’s central bank as the most unpredictable bank in the world.

However, not all the experts agree with this view.

Decisions taken by the bank throughout the past 4 years had been considerably anticipated. The Central Bank of the Russian Federation made it clear to the market that it intended to systematically reduce interest rates. Therefore, many have made significant profits on a rally of federal loan bonds. The latest rate increase did not surprise the market as well and was predicted by quite a lot of analysts.

The bank also believes that their decisions are not particularly unforeseen for the markets.

“My advice to analysts: try rather to look at the current situation than to read words of the previous statements, form your opinion regarding our future actions by understanding the logic of our decisions,” Ksenia Yudaeva, First Deputy Governor of the Bank of Russia advised.

On the other hand, the Federal Reserve System was considered by the IMF the most predictable. Janet Yellen, the former US Federal Reserve System Chairman, purposefully established communication with the market. Jerome Powell, the current Fed’s Chairman, has the same approach. The US Federal Reserve has not had a single step over the past 8 years, which the market did not know about in advance, the IMF claims.