30 Jan 2015
Russian bank surprises by a rate cut – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team shares that the Russian central bank surprised the markets today by cutting rates from 17% to 15% citing inflation and inflation expectations to decrease gradually.
Key Quotes
“The Russian central bank surprised markets by cutting rates 2 percentage points to 15.0%. We did note that the new man at the central bank, Dmitry Tulin, was placed as the head of monetary policy to take some action, but we didn’t expect it to happen so soon.“
“The central bank stated that “Inflation and inflation expectations are forecast to decrease as the economy gradually adjusts to changing external conditions and the impact of the exchange-rate dynamics on prices wanes”.”
“The ruble is down nearly 3% against the basket and 4% against the dollar, and we expect to revisit the December lows in the coming weeks.”
“Separately, European Union foreign ministers extended (by six months) the targeted sanctions against Russian individuals and companies, but fell short of creating new stations.”
Key Quotes
“The Russian central bank surprised markets by cutting rates 2 percentage points to 15.0%. We did note that the new man at the central bank, Dmitry Tulin, was placed as the head of monetary policy to take some action, but we didn’t expect it to happen so soon.“
“The central bank stated that “Inflation and inflation expectations are forecast to decrease as the economy gradually adjusts to changing external conditions and the impact of the exchange-rate dynamics on prices wanes”.”
“The ruble is down nearly 3% against the basket and 4% against the dollar, and we expect to revisit the December lows in the coming weeks.”
“Separately, European Union foreign ministers extended (by six months) the targeted sanctions against Russian individuals and companies, but fell short of creating new stations.”