7 Sep 2015
CBR to take a pause on the easing cycle – TDS
FXStreet (Córdoba) - Analysts from TD Securities expect on Friday that the Central Bank of Russia (CBR) will keep the interest rate unchanged.
Key Quotes:
“In Russia, also on Friday, we and the consensus expect the CBR to take a pause in its easing cycle, and keep the key rate on hold at 11.0%. Since the July Board meeting, RUB has weakened by about 10% against USD, largely as a result of the fall in oil prices.”
“Although CPI inflation is expected to be on a downward path into next year, fuel and utility price hikes in July have caused a temporary interruption to this trend. We think that the CBR will err on the side of caution and keep rates on hold, but we think this will be temporary and expect further rate cuts later this year.”
Key Quotes:
“In Russia, also on Friday, we and the consensus expect the CBR to take a pause in its easing cycle, and keep the key rate on hold at 11.0%. Since the July Board meeting, RUB has weakened by about 10% against USD, largely as a result of the fall in oil prices.”
“Although CPI inflation is expected to be on a downward path into next year, fuel and utility price hikes in July have caused a temporary interruption to this trend. We think that the CBR will err on the side of caution and keep rates on hold, but we think this will be temporary and expect further rate cuts later this year.”