Economics

Credibility Risk May Prompt a Sixth Straight Rate Cut in Russia

  • Most economists forecast easing Friday, some expect a hold
  • Annual inflation slowed to 2.4% in January, below expectations
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The Bank of Russia may be gearing up for its sixth consecutive interest-rate cut this week after inflation slid deeper below target in January.

A majority of economists polled by Bloomberg say Governor Elvira Nabiullina will cut the key rate to 6% when the central bank meets on Friday. Those arguing that borrowing costs are more likely to be kept on hold point to uncertainty surrounding a recent government overhaul and the global spread of coronavirus.