GBP/RUB posts 2nd weekly loss, settles above 39-week low

The GBP/RUB currency pair registered a second straight week of losses and settled above Tuesday’s 39-week low of 105.315 in the wake of the Bank of England’s and the Bank of Russia’s policy decisions.

The Bank of Russia (CBR) left its key policy rate without change at a record high of 21% at its March meeting, in line with market consensus. The central bank noted that further tightening would likely not be required to support disinflation.

The CBR cautioned that inflationary pressures remained elevated as demand continued to exceed domestic capacity. Still, the central bank pointed out that pro-inflationary risks had subsided since the policy meeting in February.

Meanwhile, the Bank of England maintained its benchmark interest rate at 4.5% at its March policy meeting, also in line with market consensus.

BoE policy makers adopted a wait-and-see approach as inflation remained elevated and global economic uncertainties persisted.

One Monetary Policy Committee member, Swati Dhingra, has voted in favor of a 25 basis point rate cut to 4.25%.

Given the medium-term inflation outlook, BoE policy makers considered a gradual and cautious approach to further monetary easing as appropriate.

Despite a drop in global energy prices, the BoE now forecasts a peak inflation rate of 3.75% by the third quarter of 2025.

The GBP/RUB currency pair settled 1.16% lower at 108.772 on Friday.

The exotic Forex pair lost 1.70% for the week.

The Russian Ruble has pulled back from a 39-week high against the British Pound, after Russia’s President Putin abstained from agreeing to all concessions proposed by the United States in a ceasefire deal following a call with US President Trump. This dampened optimism that a deal could bring peace between Russia and Ukraine.