Russia Consumer Prices (Jan.)

The further rise in Russian inflation to a near two-year high of 5.2% y/y in January will remove any chance of an interest rate cut in the coming months. The central bank will wait for evidence that broader price pressures are easing and that households’ inflation expectations have fallen before resuming its easing cycle. But we think that a window for a 25bp rate cut to 4.00% is likely to open up later this year.