The Bank of Russia may lower the rate by 100 bp. in July – „Solid Broker”
The Bank of Russia may lower the key rate by 100 bp. at a meeting in July this year, analysts of the investment company „Solid Broker” believe.
“As we can see, for the first time in the history of observations, deflation in Russia in June. However, so far it is not necessary to say that this is a stable trend. Nevertheless, it is much more important for us that inflation data for June will be a serious argument for reducing the key rate on meeting of the Central Bank on July 22.
Moreover, in a sense, monetary policy still remains tight, since at the moment the rate is much higher than inflation (deflation). Lending rates are recovering, but they are still not high enough. Therefore, we expect the CBR to take another step of 100 bp. in terms of rate cuts in July,” the experts write in the review.