Russia: CBR joins the easing ball – TDS

The CBR has finally joined the easing ball of global central banks. As the last invited to the club, the MPC delivered a first 50bps key rate cut to 5.50%, Cristian Maggio, a strategist at TD Securities, informs. USD/RUB is sitting at 74.275.

Key quotes

“The CBR cut the key rate by 50bps to 5.50% and changed the stance of monetary policy to 'accommodative.'

“The press statement and Governor Nabiullina confirm that further easing, even on a large scale, is possible and likely going forward, on the back of a deep recession and stable inflation expected this year.”

“The market has so far rewarded the move, strengthening RUB.”