Russia: CBR rate hike is underrepresented – TDS

The week of March 16th brings the rate announcements in Russia on Friday. The decision is scheduled during a time of extreme market turbulence, economists at TD Securities apprise. USD/RUB is trading at 73.80.

Key quotes

“We would not be entirely surprised to see the CBR hike rates to support the currency. We think this scenario is underrepresented in the economic consensus. There, an overwhelming majority anticipates a hold.”

 “RUB will likely remain stable in case of a hold or potentially strengthen in case of a preemptive hike.”