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Cristian Maggio, Head of Emerging Markets Strategy at TD Securities, notes that in Russia, the CBR left the Key Rate unchanged at 7.25% as forecast by TD and the unanimous consensus.

Key Quotes

“The balance of risks is shifted towards pro-inflationary risks. Monetary conditions are close to neutral but are now at the tight end of the monetary policy spectrum.”

“The market reaction has been negligible, as expected.”

“Going forward, we expect further easing to be constrained by a possibly adverse dynamic of inflation expectations. However, we still see scope for further 50bps of easing in the forecast horizon.”