The Bank of Russia left rates unchanged

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Today, the CBR left the key rate unchanged at the level of 7.25%, which is fully in line with our forecasts and market expectations. Despite constant pressure from borrowers, the Bank of Russia made the right decision.
Risks of acceleration of inflation to a target of 4% by year-end, adding the risk of increasing global oil production and falling prices for oil to $60-$65 per barrel. In this case, the Russian ruble looks undervalued. It is worth noting that the current value of the key rate is already very close to the announced by the CBR target of 6-7%. We believe that the decision of the Bank of Russia will be neutral for the ruble exchange rate and stock prices.
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Alexander Razuvayev,
The Director of analytical Department,
Alpari