30 Apr 2015
CBR cuts rates by 150bp, above consensus expectations – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team shares that the Russian central bank cut rates to 12.50%, and signalled further cuts ahead as inflation improves.
Key Quotes
“Russia’s central Bank cut rates 150 bp to 12.50%, more than the expected 100 bp. The bank said it would continue cutting rates as inflation improves.”
Officials have made it clear that they were not happy about the fast rebound in the ruble and would prefer the currency weaker, so there was no resistance on that side.”
“Inflation remains high, and the bank noted that the stronger ruble would help lower it. Still, inflation doesn’t seem to be on the top of the central bank’s list of concerns, especially with GDP expected to contract sharply (-3.0%) this year.”
Key Quotes
“Russia’s central Bank cut rates 150 bp to 12.50%, more than the expected 100 bp. The bank said it would continue cutting rates as inflation improves.”
Officials have made it clear that they were not happy about the fast rebound in the ruble and would prefer the currency weaker, so there was no resistance on that side.”
“Inflation remains high, and the bank noted that the stronger ruble would help lower it. Still, inflation doesn’t seem to be on the top of the central bank’s list of concerns, especially with GDP expected to contract sharply (-3.0%) this year.”