GBP/RUB settles below 2-week high, posts 1% weekly gain

The GBP/RUB currency pair settled below recent high of 111.220, its strongest level since April 9th, in the wake of the Bank of Russia’s policy decision, while the Pound seemed to have ignored robust UK retail sales data.

The Bank of Russia (CBR) left its key policy rate without change at a record high of 21% at its April meeting, in line with market consensus.

The central bank noted that despite inflationary pressures were gradually easing, they were still elevated.

The CBR warned a further slowdown in global economic growth and a slump in oil prices could increase inflationary pressure through the Ruble’s exchange rate dynamics.

The CBR projects inflation to ease to 7.0%–8.0% this year and return to 4.0% by 2026. It also kept its 2025 GDP growth forecast without change at 1% to 2%.

In the meantime, US President Trump’s envoy, Steve Witkoff, met Russia’s President Vladimir Putin in Moscow yesterday to discuss the US plan to end the war in Ukraine, while Kremlin foreign policy aide Yuri Ushakov described the meeting as constructive.

“This conversation allowed Russia and the United States to further bring their positions closer together, not only on Ukraine but also on a number of other international issues,” Ushakov was quoted as saying by Reuters.

“As for the Ukrainian crisis itself, the discussion focused in particular on the possibility of resuming direct negotiations between representatives of the Russian Federation and Ukraine.”

Meanwhile, on the data front, retail sales in the UK rose at a monthly rate of 0.4% in March, confounding forecasts of a 0.4% drop, following a revised down 0.7% surge in February.

In annual terms, retail sales rose 2.6% in March, following a 1.8% increase in February.

The GBP/RUB currency pair settled 0.53% lower at 110.409 on Friday.

The exotic Forex pair gained 1.15% for the week.