Elvira Nabiullina is the governor of Russia's central bank.Shamil Zhumatov/Reuters
Good morning. More and more signs are pointing to a Russian default, but Russia doesn't seem to agree that's the case. Plus, Fed Chair Powell signaled that more aggressive moves from the central bank could be looming.
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Let's break it down.
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"In our view, this reflects the technical nature of Russia's debt servicing issues, which we think are far-removed from the underlying credit dynamics," analysts said. But the Wall Street bank also pointed out that the war is damaging Russia's credit fundamentals, but would otherwise have a stronger rating.
Moscow, meanwhile, tried to reassure the market. On Thursday, Russia's central bank governor said the country isn't at risk of defaulting on its debt. The Kremlin, Elvira Nabiullina explained, has all the "necessary financial resources" to avoid it.
The lender was set to pay $52 million of interest payments on dollar-denominated bonds, but failed to do so. The bank said it had no choice, as it has been "completely cut off from foreign payment infrastructure in US dollars."
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