CBR expected to keep rates on hold – BBH

Analysts at BBH see the Russian central bank (CBR) keeping its monetary status quo unchanged at this week’s meeting.

Key Quotes

“Russian central bank meets Friday and is expected to keep rates steady at 10%”. 

“A small handful of analysts look for 25-50 bp of easing, but we think it’s too soon to cut rates. CPI rose 5.4% y/y in December, the low for the cycle but still higher than the central bank’s 4% target”.

“We do not think the recently announced FX purchase plan will materially change the ruble’s direction, which will be determined mostly by oil prices”.