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12 Mar 2015
CBR expected to cut rates tomorrow – TDS
FXStreet (Edinburgh) - Paul Fage, Strategist at TD Securities sees the Russian central bank cutting its benchmark rate by 100-200 bp in tomorrow’s meeting.
Key Quotes
“At tomorrow’s meeting, we think the CBR will take advantage of the recent relative stability of the ruble to cut the key rate further in order to try to put a brake on the decline in economic activity”.
“We think the minimum that they will cut is 100 bps, with a chance that they will cut as much as 200 bps”.
“The Bloomberg survey consensus is for a cut of 100 bps. However, of the 31 economists surveyed, 9 think the key rate will be left unchanged, while 5 expect a cut of more than 100 bps”.
“We think a 100 bps cut is largely priced into the market. A 200 bps cut would likely lead to some weakening of the ruble and a rally in Russian rates”.
Key Quotes
“At tomorrow’s meeting, we think the CBR will take advantage of the recent relative stability of the ruble to cut the key rate further in order to try to put a brake on the decline in economic activity”.
“We think the minimum that they will cut is 100 bps, with a chance that they will cut as much as 200 bps”.
“The Bloomberg survey consensus is for a cut of 100 bps. However, of the 31 economists surveyed, 9 think the key rate will be left unchanged, while 5 expect a cut of more than 100 bps”.
“We think a 100 bps cut is largely priced into the market. A 200 bps cut would likely lead to some weakening of the ruble and a rally in Russian rates”.