Russia Shock Rate U-Turn Seen as Harbinger of More Cuts: Economy
Central bankers in Moscow led by Governor Elvira Nabiullina, pictured here in September 2014, last week started to reverse a December emergency increase, signaling they are focused on tempering an economic slump that threatens to destabilize the financial industry.
Photographer: Andrey Rudakov/BloombergIt didn’t take long for economists to change their minds about the road ahead for Russian monetary policy.
After a surprise cut on Jan. 30, the Bank of Russia’s next move will be another reduction, according to 30 of 33 economists surveyed by Bloomberg, with 70 percent forecasting the move by the end of April. That compares with a majority predicting last week that borrowing costs would be held until at least June. Four economists now said the key rate may be lowered at an unscheduled meeting as early as this month.