MOSCOW, Oct 13 (Reuters) – The Russian rouble stabilised on Wednesday ahead of government bond auctions and a weekly inflation report that could shed light on how much the central bank might raise rates when it meets next week.<\/p>\n
At 0748 GMT, the rouble was 0.1% weaker against the dollar at 71.85 and had shed 0.2% to trade at 82.99 versus the euro.<\/p>\n
Brent crude oil, a global benchmark for Russia\u2019s main export, was down 0.1% at $83.35 a barrel ahead of a speech by President Vladimir Putin at an energy conference at a time of surging gas prices and supply shortages in Europe.<\/p>\n
Higher gas prices mean Russia could receive an extra $21 billion in liquidity in 2022, which suggests the rouble is likely to average 68.3 against the dollar next year, 2.5% stronger than previously thought, Sberbank CIB said in a note.<\/p>\n
Weekly inflation data is in focus after the economy ministry raised its year-end forecast to 7.4% from 5.8%, highlighting the stubbornly rising prices that have hit living standards already dented by the COVID-19 pandemic.<\/p>\n
An inflation rate above the central bank\u2019s (CBR) 4% target suggests it will raise its key interest rate for the sixth time this year at its next board meeting on Oct. 22.<\/p>\n
Earlier this week, Putin ordered his government to study new social support measures to soften the hit from higher prices, though higher social spending could further spur inflation.<\/p>\n
\u201cWe expect CBR to revise its inflation and policy outlook during its October meeting and raise the key rate another 50 basis points to 7.25%,\u201d Sova Capital said.<\/p>\n
The finance ministry\u2019s OFZ bond auctions are also on the market radar as demand for the high-yielding fixed-income securities could support the rouble.<\/p>\n
Russian stock indexes were down after hitting record highs.<\/p>\n
The dollar-denominated RTS index fell 0.5% to 1,861.5 points. The rouble-based MOEX Russian index was 0.4% lower at 4,247.2 points, though still near its all-time peak of 4,284.53 hit on Monday.<\/p>\n
For Russian equities guide see<\/p>\n
For Russian treasury bonds see<\/p>\n