CBR could cut rates in September – BBH

Analysts at BBH expect the Russian central bank to resume its easing cycle at its next meeting in September.

Key Quotes

“Russia reports Q2 GDP and June trade Friday. Growth is expected to pick up to 1.6% y/y from 0.5% in Q1”.

“Inflation unexpectedly fell to 3.9% y/y in July, below the 4% target for the first time. The central bank paused its easing cycle in July after cutting three straight meeting. Next meeting is September 15, we think a cut then is likely”.