Today, the Bank of Russia released its key rate, reducing it to 10.50% p.a. The key rate had remained unchanged since August 2015.
“The Board of Directors notes the positive trends of more stable inflation, decreased inflation expectations and inflation risks against the backdrop of imminent growth recovery in the economy. Slowing inflation allows more certain reliance on sustainable inflation reduction to less than 5% in May 2017 and the 4% target in late 2017, taking into account the decision just made and the retention moderately tight monetary policy. The Bank of Russia will consider the possibility of a further rate cut based on estimates for inflation risks and alignment of inflation decline with the forecast trajectory.”
