Russian central banks expected to ease further – TDS

FXStreet (Edinburgh) – According to strategists at TD Securities, the CBR could lower its benchmark rate by 25 bp at this week’s meeting.

Key Quotes

“In Russia, on Friday, in line with the consensus, we expect the CBR to cuts its key rate by 50 bps to 11.0%”.

“At the June meeting the CBR cut by 100 bps, but said that the potential of monetary policy easing will be limited by inflation risks in the next few months“.

“The reason for the CBR’s concern is the expected move back up in July inflation due to tariff hikes”.

“We think that these concerns will slow down but not stop rate cuts”.

“We also do not think that recent moves higher in USDRUB will stop the CBR easing as the FX moves have largely matched falls in oil prices”.

According to strategists at TD Securities, the CBR could lower its benchmark rate by 25 bp at this week’s meeting…

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