Russia

Renewed eurozone volatility, especially concerning a default by a sovereign in the absence of more comprehensive fiscal integration measures and higher bailout funds will have significant implications for credit availability in emerging Europe, as Western parent banks are restricting available capital to their subsidiaries. Businesses are also likely to seek to increase their cash reserves in light of the increasingly uncertain economic backdrop. We therefore believe that a total of 75 basis points of interest rate cuts to 7.25% are likely over the course of 2012.

To read the full article, please choose one of the following options: