(21 MARCH 2018)DAILY MARKET BRIEF 2:Central Bank of Russia expected to cut rates on Friday

(21 MARCH 2018)DAILY MARKET BRIEF 2:Central Bank of Russia expected to cut rates on Friday

21 March 2018, 13:03
Jiming Huang
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Elected on Sunday 18 March with a majority of 76%, President Vladimir Vladimirovitch Poutine confirms his fourth and (supposedly) last mandate as President of the Russian Federation, giving a strong signal on international stage and confirming his popularity among the Russian public opinion. Regardless of his victory against the other seven presidential opponents, President Putin will be supporting multiple projects that concern improvements in foreign direct investment, further privatization within the economy, access to qualified labor force and credit financing enhancement for small and medium-sized businesses.

As the economy slowly recovers from previous recession in 2015, with 2018 Gross Domestic Product y/y estimated at 1.80% and February Consumer Price Index y/y given at 2.20%, the Central Bank of Russia is expected to show a further dovish stance on its next monetary policy meeting on Friday 23 March, reducing current interest rate given at 7.50% by 25 basis points.

USD/RUB remained stable during the year, currently trading at 57.71 and expected to head lower along the 57.50 range in the short-term.

By Vincent Mivelaz


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