Russian central bank governor Nabiullina out on the wires.
- key rate to be cut as inflation risks fall
- longer rates fall faster than short-term market rates
- longer rates also linked to inflation expectations
- high rates choke access for investment projects
- banks shifting from liquidity deficit to surplus
The higher inflation rates of the EM economies bring their own headaches ofc. Ironic really when the most of the world's developed economies are desperate to drive theirs higher. Either way it seems the lower interest rate path has its limitations.
