In line with the unanimous consensus, analysts at TD Securities expect the CBR to keep the Key Rate on hold at 7.25% at today’s Board meeting. Key Quotes “Recent inflation data has been benign with June headline and core CPI inflation both running at 2.3% Y/Y, comfortably below the 4% target. However, the CBR is concerned about the impact of the VAT hike, from 18% to 20% which will be introduced in January next year.” “In particular they are worried about the impact on inflation expectations, which have indeed moved sharply higher to 9.8% Y/Y, and this will cause the CBR to maintain their cautious stance.” “We think the CBR will ultimately be able to cut the Key Rate by a total of 50bps bringing it to a “neutral” level of 6.75%. It is hard to be precise about the timing of these cuts, but in our central scenario we expect the CBR to remain on hold until the end of the year, with then a chance of a 25bps cut at the December meeting and then another early next year.” “A prerequisite for the cuts will be an improvement in inflation expectations.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next ECB: No new information – Danske Bank FX Street 5 years In line with the unanimous consensus, analysts at TD Securities expect the CBR to keep the Key Rate on hold at 7.25% at today's Board meeting. Key Quotes "Recent inflation data has been benign with June headline and core CPI inflation both running at 2.3% Y/Y, comfortably below the 4% target. However, the CBR is concerned about the impact of the VAT hike, from 18% to 20% which will be introduced in January next year." "In particular they are worried about the impact on inflation expectations, which have indeed moved sharply higher to 9.8% Y/Y, and this will cause the… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
