15 Jun 2015
CBR could moderate its pace of easing – TDS
FXStreet (Edinburgh) - Strategist at TD Securities Paul Fage assessed today’s decision by the Russian central bank of lowering the benchmark rate by 100 bp to 11.50%.
Key Quotes
“At today’s meeting of the Board of Directors of the Central Bank of Russia (CBR) the Key Rate was cut by 100bps to 11.50%. This was in line with our and the consensus expectation”.
“While the statement said that the CBR will continue cutting the key rate as the inflation rate falls, “the potential of monetary policy easing will be limited by inflation risks in the next few months “.
“The fact that the pace of easing might need to be moderated over the next few months is positive, as it suggests that the CBR does not want to get too far ahead of the curve, and that easing is data driven”.
“Following the rate cut the Russian Economy Minister, Ulyukaev said that the rate cut should have been more aggressive. Such comments criticising the central bank have been unusual in Russia. We hope that it is not the start of attempts by Russian politicians to influence the central bank as we have seen in Turkey”.
Key Quotes
“At today’s meeting of the Board of Directors of the Central Bank of Russia (CBR) the Key Rate was cut by 100bps to 11.50%. This was in line with our and the consensus expectation”.
“While the statement said that the CBR will continue cutting the key rate as the inflation rate falls, “the potential of monetary policy easing will be limited by inflation risks in the next few months “.
“The fact that the pace of easing might need to be moderated over the next few months is positive, as it suggests that the CBR does not want to get too far ahead of the curve, and that easing is data driven”.
“Following the rate cut the Russian Economy Minister, Ulyukaev said that the rate cut should have been more aggressive. Such comments criticising the central bank have been unusual in Russia. We hope that it is not the start of attempts by Russian politicians to influence the central bank as we have seen in Turkey”.