CBR has no room for further easing in H1 2015: Danske Bank

Quotes from Danske Bank:

-The CBR hiked its key rate by a total of 1,150bp to 17% in 2014, putting the brakes on the real economy through a severe demand-side shock. On 30 January, the central bank made an unexpected move, cutting the key rate by 200bp to 15%. We see the decision as being made under political pressure.

-Conditions are not improving and inflation has acce lerated from 11.4% y/y in December to 15% in January. In our view, the central bank has no room for further easing in H1 15 as we expect CPI to approach 20% y/y in the coming months.