Russia: CBR likely to keep key rates on hold – TDS

Analysts at TD Securities are expecting the CBR to keep the Key Rate to stay on hold at 7.75% in Russia.

Key Quotes

“The CBR will be fairly happy with developments since the 8 February Board meeting. The impact of the VAT hikes that came at the start of this year has not been as bad as the CBR feared and USDRUB is down about 2.6%, making it one of the better performing EM currencies over this period.”

“On the FX side, we expect little immediate response or some modest move up in USDRUB if the press statement or the press conference strike a more dovish tone, but that is not our expectation.”