Sberbank CIB says central bank can cut key rate to 7.5% Jun 14

MOSCOW, Jun 3 (PRIME) -- The Russian central bank can reduce the key rate by 0.25 percentage points to 7.5% at the next meeting on June 14, according to a report released by Sberbank CIB Investment Research on Monday.

“The current situation allows us to assume that inflation will amount to 4.5% by the year’s end instead of 4.7%, as we forecasted earlier. This give us the reason to assume that a decision to cut the key rate by 25 basis points to 7.5% will be made at the next meeting of the board of directors of the central bank,” the statement read.

According to Sberbank CIB, global market volatility growth is the only large risk factor for the Russian economy.

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