The Bank of Russia admits the possibility of a further reduction in the key rate
Photo: TASS, Sergei Bobylev
Moscow. 27 Oct. INTERFAX – the Board of Directors of the Central Bank of the Russian Federation at the meeting on Friday decided to reduce the key rate from 30 October by 25 basis points to 8.25% per annum, according to the message controller.
The Central Bank considers that inflation remains close to 4%, and the deviation down from the forecast is mainly due to temporary factors. The Bank of Russia also notes the growth of the Russian economy.
“Inflation expectations remain elevated. Mitigation remains fragile and uneven. Medium-term risks of exceeding the inflation targets outweigh the risks of sustainable inflation deviation down. With this in mind, the Bank of Russia will continue to move from moderately tight to a neutral monetary policy gradually,” – emphasizes the Bank.
The Bank of Russia when making decisions for a bet will be to assess the balance of risks substantial and sustained deviations of inflation above and below target, as well as the dynamics of economic activity in relation to the forecast. The Bank of Russia admits the possibility of a further reduction in the key rate at the next meeting.