U.S. Fed might still raise rate in 2015 but it won't have big impact on ruble - minister
ISTANBUL. Oct 6 (Interfax) - Russian Economic Development Minister Alexei Ulyukayev believes there is still a chance that the U.S. Federal Reserve will raise its base interest rate this year, but market players have already factored this into currency exchange rates.
"It seems to me that the likelihood [of the Fed raising rates this year] has genuinely decreased. But I would still seriously consider the possibility of a rate increase in December. And that this increase would automatically shift to next year - I don't think so," Ulyukayev told reporters on Monday.
But such a possible rate hike should not have a major impact on the ruble's exchange rate, Ulyukayev believes. "It seems to me that this is already factored into the exchange rate, but go prove this," the minister said.
Central Bank chief Elvira Nabiullina said in mid-September that she does not expect major volatility on financial markets due to a possible interest rate hike by the U.S. Fed.