The Central Bank will lower the rate by 0.5% today - consensus forecast

The Central Bank key rate will be announced at 13:30 Moscow time. How will this affect the markets?

The stock market may rally slightly today on the news of the rate cut as investors will shift funds from bonds to stocks. Only if the Central Bank lowers the rate even more than 0.5% will the moves be notable.

The ruble will not react at all - the policy of the Central Bank had little effect on the exchange rate at first. The main factor for the ruble remains the lack of imports, which keeps the dollar at 60 rubles.

Yields on all bonds will fall, but by less than 0.5% - this reduction is already built into the bond price.