US: Reuters/Michigan Cons. Sent. Index fell to 71.8 in March

TD Securities analysts saw the Board of Governors of the Central Bank of Russia leaving all three key rates unchanged as unanimously expected (refinancing rate at 8.25%, overnight deposit rate at 4.50% and overnight repo rate at 5.50%). The neutral tone of the statement compensates concerns on rising inflation with the observation that the economy continues to decelerate. “But most importantly, “the Bank of Russia judges that the current level of money market interest rates is appropriate,” dismissing the residual speculation that the CBR is up for an imminent rate cut, in line with the government’s call for looser rates”, wrote analyst Tim Davis, expecting unchanged rates at least until the newly appointed CNR Chairman Nabiullina takes office at the end of Ignatiev’s mandate in June. “At that point, expectations for rate cuts could start building up again”, he added.