Russia: Thursday CBR meeting preview – DB

FXStreet (Barcelona) - The Deutsche Bank Team believes that CBR may increase rates by 100bp in this month, with probability of further rate increase in 2015.

Key Quotes

“The final CBR monetary policy meeting of 2014 is scheduled for Thursday, 11 December. As announced earlier, in addition to the key rate decision the CBR will publish a detailed analysis of economic conditions and updated forecasts.”

“We believe that the CBR may increase rates moderately by 100bp in December, with further rate increases in 1Q15 if pressures in the financial markets persist, before reducing rates in 2H15 on the back of lower inflationary pressures and a moderation of capital outflows.”

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GBP/JPY trades below 188 handle

The pound extended losses from the previous session and trades lower against the Japanese counterpart after the yen marched up to a 3-week high against the US dollar.
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