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Food Price Controls Neutral On CBR Decisions; Cause Distortions Longer-Term

RUSSIA
  • Intorduction of price controls on some food is neutral for Bank of Russia's key rate decision for the next couple of quarters - Alfa-Bank
  • In the short-run this decision will help to stabilize price growth
  • In the longer run it will cause a market distortion, including a stronger preference for exports and a decline in the quality of local food
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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