The Russian central bank cut its headline interest rate by 25bps, in line with expectations, but changed its outlook for the pace of future easing.
Following the latest interest rate rise in the US, we expect a further one in September and balance sheet reduction to kick in around the turn of the year.
Economic and Strategy Viewpoint
In this month's update, we look at how political risks may be fading and macro worries are returning, consider the policy differences between the UK's two major parties, and examine the diverging fortunes of the emerging markets.
The global recovery remains intact and political risks have eased, but more traditional macroeconomic concerns return to the fore.
Allegations of corruption against Brazil’s president could have implications for economic recovery and may alter the outlook for the 2018 presidential election.