CBR’s Nabiullina shows growing inflation concerns

Russian central bank governor Elvira Nabiullina’s post-meeting press conference reinforced the message that policymakers are increasingly concerned about pro-inflationary risks, including those stemming from the recent mobilisation of reservists. That said, we think the decision to stop cutting interest rates today is likely to mark a pause in the easing cycle and that there is scope for one more interest rate cut in 2023.