FXStreet (Edinburgh) – Paul Fage, Strategist at TD Securities, sees the Russian central bank to lower its benchmark rate by 100 bp at its meeting on Monday.
Key Quotes
“At the meeting of the Board of Directors of the Central Bank of Russia (CBR) on Monday (15 June), we expect the key rate to be cut by 100bps to 11.50%. This is in line with the consensus”.
“The headline inflation rate has passed its peak and can be expected to continue to trend downwards over the rest of the year. With the economy remaining weak the CBR is keen to get rates down as quickly as possible”.
“The weakening of the ruble since the last board meeting has been in part due to the CBR’s own actions. We think that the CBR is comfortable with USDRUB around current levels (55) and hence that on Monday, a somewhat less aggressive rate cut than the 150 bps at the April meeting is appropriate”.
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