CBR expected to keep rates unchanged this week – BBH

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

Key Quotes

“Central Bank of Russia meets Friday and is expected to keep rates steady at 9.0%”.

“However, the market is split. Of the 32 analysts polled by Bloomberg, 12 see a 25 bp cut and 20 see no cut”.

“CPI rose 4.4% y/y in June, up from the 4.1% trough in April and May and above the 4% target.  The central bank has warned inflation may rise further, so it’s a close call. We lean towards no move but acknowledge risks of a 25 bp cut”.