In view of analysis team at Rabobank, the Bank of Russia is set keep its policy rate unchanged at 7.75%. “With the Russian ruble the best performing EM currency so far this year and the negative impact of a VAT hike proving less negative than initially anticipated, Governor Nabiullina is in a relatively comfortable situation to maintain wait-and-see approach adopted after the CBR surprised the market with two 25bps hikes in September and December. The main focus will be on the official statement as the market will be looking for any clues that perhaps the next move could be a cut due to fading inflationary risk.”