Global policy rates:Changes to rates and HSBC forecasts

In Russia, we expect the central bank to front-load its easing with two 50 bps cuts in Q2 and Q3 2017 followed by five 25 bps cuts taking thepolicy rate to 7.00% by the end of 2018. While household inflation expectations are lower, it is still far away from the inflation target so we do notexpect a deeper rate cutting cycle.

    The Brazilian central bank cut the SELIC by 100 bps in line with our expectations. We expect the rate to fall to 7.50% by the end of 2018following cuts of varying sizes in 2H 2017 and 2018.