MOSCOW (Reuters) – The Russian central bank sometimes appears holding the key rate unchanged on Friday despite inflationary pressures in connection with the newest round of U.S. sanctions and better prices through the World Cup, a Reuters poll of 25 analysts showed on Wednesday.
There can be another small chance of a rate cut, however, as annual inflation remains underneath the central bank's target despite external shocks and an increasing amount of inflationary expectations.
Sixteen outside of 25 analysts and economists polled by Reuters predicted the central bank would offer the key rate at 7.Twenty-five percent .
The link between the poll accomplished on June 13 largely match the "hold" expectation inside of a Reuters monthly economic poll at the end of May. [nL5N1T25O3]
The Bank of Russia reports it was closely watching major central banks that will be tightening their monetary policy in 2010.
If the Russian central bank supports the key rate, it would help support Russian assets amid monetary policy tightening elsewhere, said Dmitry Dolgin, an analyst at Gazprombank.
Ahead of the planet Cup that Russia hosts in June and July, the central bank said an up to date boost in fuel prices would be a concern. The markets, subsequently, have already been troubled by a sell-off in the rouble as soon as the America imposed fresh sanctions against Russia in April.
Still, annual inflation has remained steady at 2.4 % for three consecutive months as much as May, hovering inside of the 4.0 percent level targeted by the central bank.
Central bank officials, including Governor Elvira Nabiullina, have given few clues on Friday's rate decision, saying they would need more time to look at many different factors.
"This time you will find there’s particular suspense on the results of the meeting," said Tatiana Evdokimova, chief economist at Nordea Bank in Moscow.
Nine of 25 analysts who took part in the Reuters poll said they expected the central bank to reduce the true secret rate to 7.00 percent this Friday.
The central bank is placed to announce the pace decision at 1030 GMT on Friday and hold a news conference with Nabiullina at 1200 GMT.