Thursday, April 30, 2015

Bank of Russia

The Bank of Russia will continue cutting the key rate this year, bringing it to 9% by the end of 2015, Danske Bank says. Monetary easing, including Thursday's 150 bps cut, will be positive for the economy and financial markets. "However, the easing effect will not be seen in the real economy until 2016 at the earliest even if we do not see geopolitical woes coming into the main picture," Danske says. The ruble is set to weaken moderately in the long run as the market prices in further rate cuts. Danske sees the dollar rising to 61 rubles in the short term from around 52 on Thursday.