Russian inflation remains elevated, concerns central bank

Russian inflation remains persistant, this is also explained by the consumer price data, which was 0.7% mom for October climbing 0.1% from that of previous month. Russian central bank had not cut rates any further recently. 

Real interest rates in Russia are unattractive if there is no rapid fall in inflation, because the bank rate is 4% under the inflation. This also weighs on RUB.

"The fact that there were no losses yesterday must also be due to the fact that the central bank had pointed to the stubborn inflation as a reason against further rate cuts at its last rate meeting", says Commerzbank in a research note.