Unexpected Rate Hike In Russia

Russia was expected to leave rates alone, they didn't, they hiked by 25 basis points. Inflation is running above their target rate of 6-7%! Energy, commodities and food are blamed for run-away inflation, interesting that they acknowledge Energy and Food in rate decisions, as the US tries and succeeds at excluding both. The ECB raised rates this month for the first time in a long time, and Russia completes the BRIC countries all raising rates. Brazil, India and China have raised rates at least 4 times over the last year.

OF course Bernanke says inflation is transitory, yet the BRIC economies have a huge head start on something they think is a real problem. We do have to consider that the Fed has been exporting inflation to these economies through QE, but still, it seems we're behind the curve.

Some Russian plays on energy may make for good investments as well as other Russian companies as the Ruble is sure to gain.