Bank of Russia Keeps Refinancing Rate at 7.25%

UrBC, Moscow, June 18, 2018. The Bank of Russia's Board of Directors decided to keep the refinancing rate at 7.25%, the regulatory authority's recent statement indicates.

The BOD meeting took place on June 15, 2018.

As is clear from the statement, the decision to keep the current refinancing rate has to do with growing pro-inflation risks. For one, the inflation rate might go up 1% because the Russian Government ruled the VAT would be increased to as much as 20%.

According to the Bank of Russia's estimates, these new fiscal amendments will speed up the inflation rate by about 1%. The changes might be felt as early as this year.

The next time the BOD is going to reconsider the refinancing rate is during its next meeting on July 27, 2018.

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