Central bank Russian Federation (Bank Russia) will raise a rate on 25 bp in June on a way to 6%: Morgan Stanley

(Bloomberg) - Central bank Russian Federation (Bank Russia) will continue to toughen monetary policy next Friday against proceeding acceleration of inflation and almost complete recovery of a consumer demand, predicts Morgan Stanley. The key rate will be raised on 25 basic points to 5,25% with probability 60%, or for 50 basic points with probability of 40 percent, banks of June 3 are told in the review. In case of a smaller step Central bank Russian Federation (Bank Russia) until the end of the year three more times will raise a rate, having brought it to 6% by February, 2022. "Risks of this forecast are displaced towards faster cycle that assumes...