“Siluanov expressed confidence in the further reduction of the key rate

Moscow. 26 Oct. INTERFAX – Russian Finance Minister Anton Siluanov is confident in the continuation of the trend in the decline the Bank of Russia key rate.
“Tomorrow a meeting of the Board of Directors of the Central Bank, I am sure that more will continue the trend to decrease. Question – how much? Tomorrow we will probably find out this decision,” – said Siluanov at a meeting with the Communist faction in the state Duma.

The Board of Directors of the Bank of Russia at the meeting on Friday, October 27, will consider the issues of monetary policy, including the question about the key rate. Most analysts expect a reduction in the key rate by 25 basis points (b.n.) to 8.25% per annum.

At the meeting in September the Board of Directors of the Central Bank decided to cut rates by 50 b.p. – to 8.50%. The rate was lowered for the fourth time in 2017, the total reduction amounted to 150 b.p. At the beginning of 2017 the key interest rate stood at 10.00%.

Saving Bank of Russia key rate is now unlikely, market expectations to lower them by 25 or 50 b.p. slightly disagree with the opinion of the regulator, said earlier the Director of the Department of monetary policy of the Central Bank Igor Dmitriev. He added that the regulator has yet to assess the situation in the economy.

The Central Bank has developed a “basic step” changes in the key rate, but will consider other options, said last week the first Deputy Chairman of the Central Bank Ksenia Yudaeva, asked about the possibility of reducing rates more than 50 bps.p.

Based on weekly data of Rosstat, inflation in annual terms for October 23 fell below 2.7% and was in the middle of the interval of 2.6-2.7 per cent. At the end of September, the figure was 3.0%.

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