CBR Keeps Key Rate at 7.75%

UrBC, Moscow, April 29, 2019. The Central Bank of Russia’s Board of Directors confirmed that the key rate would stay at 7.75% p.a. - for the fifth month in a row.

‘Annual inflation passed the local peak in March and started to subside in April. Consumer prices current growth rates track somewhat below the Bank of Russia forecast. In April, inflation expectations of households rose slightly after a tangible drop in March. Business price expectations continued to decline but remain at an elevated level. Short-term proinflationary risks have abated. The Bank of Russia’s decisions to raise the key rate made in September and December 2018 were sufficient to curb the effects of one-off proinflationary factors. According to the Bank of Russia’s forecast, annual inflation will return to 4% in the first half of 2020,’ the CBR’s latest press release states.

The CBR also reports the key rate might go down in the second and third quarters of the year if the development of affairs continues in accordance with their forecast.


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