Russia: CBR to opt for a cautious cut – Danske Bank

Analysts at Danske Bank expect Russia’s central bank, the CBR, to cut the key rate by 25bp to 8.75% today, as calculated trend inflation has slowed further.

Key Quotes

“Equally, we cannot rule out that the CBR may keep rates unchanged given rising external risks and food inflation.”

“High real rates are set to prevail throughout 2017, supporting the RUB and oil decoupling.”

“We still expect the CBR to follow its monetary easing path, hitting 8.00% by end-2017 and 7.00% by late-2018.”