28 Apr 2015
Russia might see a 100bp rate cut – Danske
FXStreet (Barcelona) - Vladimir Miklashevsky, Strategist at Danske Bank, previews the Russian Central Bank’s policy decision, forecasting a 100bp rate cut by the CBR, in line with consensus expectations.
Key Quotes
“This Thursday (30 April 2015) at 12.30pm CET Russia’s central bank (the CBR) will announce its monetary policy decision. We expect a 100bp cut in the key rate to 13% p.a. in line with consensus.”
“During the last meeting on 13 March 2015 the CBR had already signalled that it is ready to cut on slowing inflation as ‘the balance of risks is still shifted towards a more significant cooling of the economy’.”
“Despite the fact that the CPI levels remain very high, hitting 16.9% y/y in March 2015, and continue to damage the economy through their impact on private consumption, weekly price rises have not exceeded 0.3% and long-run expectations are clearly on the downside. In January-February weekly CPI posted 0.7% on average. The CBR expects inflation to fall to 9% y/y in March 2016 and to 4% y/y in 2017.”
Key Quotes
“This Thursday (30 April 2015) at 12.30pm CET Russia’s central bank (the CBR) will announce its monetary policy decision. We expect a 100bp cut in the key rate to 13% p.a. in line with consensus.”
“During the last meeting on 13 March 2015 the CBR had already signalled that it is ready to cut on slowing inflation as ‘the balance of risks is still shifted towards a more significant cooling of the economy’.”
“Despite the fact that the CPI levels remain very high, hitting 16.9% y/y in March 2015, and continue to damage the economy through their impact on private consumption, weekly price rises have not exceeded 0.3% and long-run expectations are clearly on the downside. In January-February weekly CPI posted 0.7% on average. The CBR expects inflation to fall to 9% y/y in March 2016 and to 4% y/y in 2017.”