Meeting of the Central Bank of the Russian Federation on Friday will be the main event of the week

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The meeting of the Bank of Russia, which will be held on December 14, will be the main event of the week. From our point of view, despite the expected January inflation to 5.0% -5.5% of, the CBR is likely to leave the key rate without changes – at level of 7,5%.
Weak economic growth is now the main headache of the Bank of Russia and the Cabinet of Ministers. It is also likely that the Central Bank of the Russian Federation at the meeting on Friday will formally announce the resumption of purchases of foreign currency for the Ministry of Finance in January 2019. While commercial banks continue to raise Deposit rates. This traditionally happens before Christmas. At the same time the probability of increasing the key rate to 8% next year is high. A managed devaluation and a weak ruble to a new reality, the Russians probably already used to.
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Alexander Razuvayev,
The Director of analytical Department,
Alpari