VIEWPOINT: CBR to cut rate by 50 bps - ITI Capital
MOSCOW. Oct 25 (Interfax) - The biggest event of the day for the Russian market will be the Central Bank meeting, and it is likely to cut the rate by 50 bps, to 6.5%, according to ITI Capital analysts.
"Generally, we're expecting a cut of 75 bps by the end of the year and another 75 bps next year, as a result of which the rate will fall to 5.5% and remain there through the end of 2020. Consequently, the potential decrease in the yield of short-term OFZ will be at least 50 bps and implies 3-4% growth in the prices of long-term issues," the analysts wrote.
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