Bank of Russia raised key rate to 9.50%, versus an increase to 8.50% expected

USDRUB plunged from around 42.13 to 40.67 in a kneejerk move on the decision but has bounced back to the pre-hike level, possibly prompted by some dovish sounding headlines:

–    BANK OF RUSSIA READY TO START EASING IF CPI SLOWS

–    BANK OF RUSSIA READY TO EASE IF EXTERNAL CONDITIONS IMPROVE

Now trading at 42.91