WOOD Flash – Russia macro: awaiting a downturn, CBR stays on hold
At its meeting on Friday (18 March), the Bank Board at the CBR decided to hold the key rate unchanged, at 20.00%. The communication from the meeting confirmed that the economy is in the middle of a steep downturn, which will unfold alongside a brutal inflationary shock. The bank also announced that it would start buying government bonds from this week, with the resumption of trading. Although the purchases are intended by the bank to support market functioning, but these are likely to work in a QE-style capacity to support fiscal spending, in our view. At this point, we do not expect monetary easing to commence before next year and, additional hikes, if required, would have to be in large increments as the sanctions have crippled part of the monetary transmission mechanism.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.