FXStreet (Edinburgh) – Paul Fage, Strategist at TD Securities, has reviewed today’s decision by the CBR to lower its repo rate to 11.0%.
“At today’s Board meeting of the Central Bank of Russia (CBR), the key rate was cut by 50 bps to 11.0%. This is in line with our forecast and the consensus. Although inflation risks are seen to have slightly increased, the CBR cut because of the weakening economy”.
“Looking forward we think that the CBR will be looking to cut rates further, but it will have to be increasingly careful how it goes, particularly with Fed rate hikes looming. So we think the pace of easing is going to be slower, and we suspect that we will soon be getting meetings with no cuts at all”.
Paul Fage, Strategist at TD Securities, has reviewed today’s decision by the CBR to lower its repo rate to 11.0%…
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