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Scotiabank See CBR Able to Stimulate Economy as Risk of Imported Inflation Ebbs

RUSSIA
  • Russia’s central bank may cut its policy rate again. Capital controls have stemmed capital flight and accordingly created the mirage of ruble strength as the currency has appreciated by over 120% since its bottom on March 7th.
  • Stemming the currency’s freefall has given the ability to cut the policy rate in an effort to stimulate the domestic economy as imported inflation risk ebbs, but not without the usual costs associated with capital controls.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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