Russia again. Depressingly predictable.

As always the panic rate hike has failed. All it did was kill the domestic economy. That has been recognized and a cut from 17 to 15% toady is likely to be only the first of many. At least the rouble's decline is no longer disorderly. That should allow them to embrace the currency weakness as the saviour it needs to be for the Russian economy. Sanctions are not going to be lifted in a hurry, and while I expect oil prices to start drifting higher from the current oversold position in the next few months it will be a long time till they're at the $100+ levels that the Russian government needs to make its numbers add up.

If I were the Central Bank I'd keep cutting in 1-2% slices and toast the weaker currency that follows.