Central Bank: Key Rate Goes Down 0.5%

19 September 2016 (12:54)

UrBC, Yekaterinburg, September 19, 2016. The country’s key refinancing rate was decreased by 0.5% down to 10.5% at Russia’s Central Bank’s last meeting, the bank’s press service reports.

‘The Bank’s Board of Directors voted on September 16, 2016 that the key rate should go down to 10% a year, given the slowing down of the inflation rate (as forecast) and the still unstable economy. At the same time, the bank feels that in order to keep up with the slowing-down trend, the current refinancing rate should remain as it is until the end of the year and possibly go down in next year’s first or second quarter,’ the press service says.

The regulatory body also believes that the current refinancing rate and the moderately strict monetary policy will result in a 4.5% increase in consumer prices by September 2017 and in the (desired) 4% increase by the end of next year. Now in considering the key rate percentage in the months to come, the Central Bank will look into inflation risks and into whether the economic indicators and inflation rate unfold in accordance with the earlier forecasts or not.

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