Commerzbank: CBR Expected to Hold Rate at 14.25% Despite Cut Pressure
Commerzbank expects the Central Bank of Russia to keep its key rate at 14.25%, pushing back against political and economic calls for a cut. Surging inflation expectations, higher oil and commodity prices, and accelerating CPI are cited as reasons against easing.
Commerzbank analyst Tatha Ghose forecasts that the Bank of Russia will leave its key interest rate unchanged at 14.25% at the next meeting, rejecting mounting political and economic pressure for a reduction.
According to Ghose, multiple factors argue against a cut: rising inflation expectations, elevated oil and commodity prices, and an accelerating Consumer Price Index (CPI). These conditions suggest the central bank will prioritize price stability over growth support for now.
Source: FXStreet Forex News