CBR expected to cut rates on Friday – BBH

Analysts at BBH see the Russian central bank to ease further its monetary conditions at its meeting on Friday.

Key Quotes

“Central Bank of Russia meets Friday and is expected to cut rates 25 bp to 9.0%”.

“However, the market is split. Of the 23 analysts polled by Bloomberg, 2 see steady rates, 12 see a 25 bp cut, and 9 see a 50 bp cut”.

“Governor Nabiuliina admitted that the bank was likely to discuss 25 or 50 bp cuts. We now lean toward 25 bp after CPI inflation remained steady at 4.1% y/y”.