Russia: CBR delivers 25bps cut – TDS

TD Securities analysts note that in Russia, the CBR has cut the Key Rate by 25bps in line with the Bloomberg consensus, but less than TD’s call for a 50bps cut.

Key Quotes

“We have now shifted our expectation for today's additional 25bps of easing at the next Board Meeting on 7 February 2020. The statement remained largely unchanged compared to the prior one, with annual inflation for 2020 still forecasted at 3.5-4.0% (no change) and risks skewed to the downside.”

“In line with our expectations, USDRUB did not react upon the announcement. A modest downside USDRUB move at the time of writing is likely to be more related to a rebound in oil prices.”