Bank of Russia Turning Heads, Not Changing Minds as Easing Seen
- Most economists predict half-point rate cut at meeting Friday
- Governor vowed ‘moderately tight’ policy in unscheduled speech
Elvira Nabiullina, governor of Russia's central bank, looks on during a panel session on the opening day of the St. Petersburg International Economic Forum 2016 (SPIEF) in Saint Petersburg, Russia, on Thursday, June 16, 2016. The 20th anniversary St. Petersburg International Economic Forum brings together heads of state and governments, political leaders, leading experts and global company executives and runs from June 16-18.
Photographer: Simon Dawson/BloombergBank of Russia Governor Elvira Nabiullina isn’t about to spring any more surprises. At least that’s the consensus of analysts for now.
While many economists were caught off guard by her unscheduled speech last week in defense of the central bank’s “moderately tight” policy, they remain undeterred about the scope for easing this Friday. All but five of the 42 analysts polled by Bloomberg say the benchmark rate will be lowered by 50 basis points to 10 percent, with the rest predicting no change on Friday. A survey of traders by the Tradition brokerage showed 47 of 65 respondents also predicting a half-point cut. The focus, instead, is shifting to what lies ahead.