CBR Cuts Key Rate to 7.5% A Year
17 June 2019 (09:21)
UrBC, Moscow, June 17, 2019. ‘On 14 June 2019, the Bank of Russia Board of Directors decided to cut the key rate by 25 bp to 7.50% per annum,’ the bank’s press release on the CBR’s website states.
‘Annual inflation slowdown is continuing. In May, households’ inflation expectations and business price expectations did not materially change and remain elevated. Economic growth in the first half of 2019 is lower than the Bank of Russia’s expectations. Short-term proinflationary risks have abated compared to March. In these circumstances, in line with the pursued monetary policy, the Bank of Russia has lowered its end-of-year annual inflation forecast for 2019 from 4.7-5.2% to 4.2-4.7%. Moving on, according to the Bank of Russia’s forecast, annual inflation will stay close to 4%.’, the bank says.
The next BOD meeting where the key rate is going to get looked into once again has been scheduled for July 26, 2019.
‘Annual inflation slowdown is continuing. In May, households’ inflation expectations and business price expectations did not materially change and remain elevated. Economic growth in the first half of 2019 is lower than the Bank of Russia’s expectations. Short-term proinflationary risks have abated compared to March. In these circumstances, in line with the pursued monetary policy, the Bank of Russia has lowered its end-of-year annual inflation forecast for 2019 from 4.7-5.2% to 4.2-4.7%. Moving on, according to the Bank of Russia’s forecast, annual inflation will stay close to 4%.’, the bank says.
The next BOD meeting where the key rate is going to get looked into once again has been scheduled for July 26, 2019.
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