CBR seen cutting rates by 50 bp on Friday – BBH

In view of analysts at BBH, the Russian central bank (CBR) is expected to lower its benchmark rate at its Friday’s meeting.

Key Quotes

“Central Bank of Russia meets Friday and is expected to cut rates 50 bp to 10%”.

“A small handful of analysts see steady rates. With inflation falling to 6.9% y/y, it gives the bank room to ease further in order to help boost the economy”.

“It’s been on hold since the last 50 bp cut in June. The one wild card is the ruble. If the EM selloff continues this week and hits the ruble badly, the central bank may be cautious and hold off”.