Russia: Nabiullina’s first meeting suggests policy continuity

Russia’s Central Bank kept its benchmark interest rates unchanged at its first meeting under the new governor, Elvira Nabiullina, confirming our view that the change in leadership at the CBR is unlikely to result in a major change in the policy stance. As such, although we expect the Bank to cut interest rates by a total of 75bps until the end of this year, more aggressive rate cuts are unlikely given the structural nature of Russia’s growth slowdown.