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13 Mar 2015
CBR cuts rates to 14% - BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team comment that Russia saw a second rate cut in the cycle, with CBR reducing rates to 14% by 100bps, in line with expectations.
Key Quotes
“Central Bank of Russia cut rates 100 bp to 14%, as expected. The market was split. Of the 31 analysts polled by Bloomberg, 9 saw no change, 1 saw a 50 bp cut, 16 saw a 100 bp cut, 2 saw a 150 bp cut, 2 saw a 200 bp cut, and 1 saw a 250 bp cut.”
“This was the second rate cut in the cycle, and comes as the ruble is at the strong end of recent trading ranges, and more easing will be seen in the coming months. The first cut came on January 30, when it first cut 200 bp to 15%.”
“With inflation running at 16.7% y/y in February, real rates are already negative and yet the ruble has firmed over the course of the past month.”
Key Quotes
“Central Bank of Russia cut rates 100 bp to 14%, as expected. The market was split. Of the 31 analysts polled by Bloomberg, 9 saw no change, 1 saw a 50 bp cut, 16 saw a 100 bp cut, 2 saw a 150 bp cut, 2 saw a 200 bp cut, and 1 saw a 250 bp cut.”
“This was the second rate cut in the cycle, and comes as the ruble is at the strong end of recent trading ranges, and more easing will be seen in the coming months. The first cut came on January 30, when it first cut 200 bp to 15%.”
“With inflation running at 16.7% y/y in February, real rates are already negative and yet the ruble has firmed over the course of the past month.”