Economics
The Data Flip That’s Bringing Intrigue to Russia’s Rate Path
- Revisions in wage data raise questions about inflation outlook
- Central bank reviews rates Friday after first cut in 11 months
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Russia’s central bank may want to have its last interest-rate decision back.
Policy makers spent two months pondering the wage data they called “mixed” before pulling the trigger on their first rate cut in almost a year in June. While readings of a pickup in nominal salaries initially showed that it settled below inflation, the second major revision since April is again throwing off the dials on Governor Elvira Nabiullina’s dashboard. Real wage growth suddenly turning positive last quarter is an argument against deeper easing at a meeting on Friday, according to Citigroup Inc.