Download RBTH Daily app for free to be up to date with what’s new in Russia. Get a fresh and brief digest every day.
Follow the link to learn more
The Russian Central Bank decided to lower the key rate by 0.5 percentage points to 10 percent for the first time since June, according to the regulator’s press release published on Sept. 16.
The Central Bank has decided to lower the key rate, taking into account slowdown of inflation according to the forecast, as well as inflation expectations at the remaining unsustainable economic activity.
According to the Central Bank’s estimates, in order to consolidate the trend towards a steady decline of inflation, it is necessary to maintain the achieved level of the key rate until the end of 2016 with the possibility of reducing it in the Q1 - Q2 of 2017.
The Central Bank’s press release also noted that, given the decision to lower the rate and at the same time maintaining a moderately tight monetary policy, annual inflation will be around 4.5 percent in September 2017 and will reach the target level of 4 percent at the end of 2017. At the same time, the risks of failure to reach a specified target level still exist.
Source: TASS
