9 Mar 2015
Russian central bank to cut rates to 14% - BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team expects the Central Bank of Russia in its Friday meet to cut rates by 100bps to 14, with market expectations for a rate cut clearly remaining in a split.
Key Quotes
“Central Bank of Russia meets Friday and is expected to cut rates 100 bp to 14%. However, the market is split.”
“Of the 26 analysts polled by Bloomberg, 10 see no change, 15 see a 100 bp cut, and one sees a 250 bp cut.”
“This would be the second rate cut in the cycle, and comes as the ruble is at the strong end of recent trading ranges. The first cut came on January 30, when it cut 200 bp to 15%.”
“With inflation running at 16.7% y/y in February, real rates are already negative and yet the ruble has firmed over the course of the past month.”
Key Quotes
“Central Bank of Russia meets Friday and is expected to cut rates 100 bp to 14%. However, the market is split.”
“Of the 26 analysts polled by Bloomberg, 10 see no change, 15 see a 100 bp cut, and one sees a 250 bp cut.”
“This would be the second rate cut in the cycle, and comes as the ruble is at the strong end of recent trading ranges. The first cut came on January 30, when it cut 200 bp to 15%.”
“With inflation running at 16.7% y/y in February, real rates are already negative and yet the ruble has firmed over the course of the past month.”