Taking into account the decision to keep the key rate at 11% per annum moderately tight monetary conditions and weak domestic demand will continue to contribute to the reduction of inflation.
MOSCOW, 30 Oct. The Bank of Russia decided to keep key rate at 11% per annum, according to a press release of the regulator.
This year the Bank of Russia gradually cut the rate. However, in the meeting of 11th September, the regulator for the first time since the beginning of the year has left it unchanged at 11% per annum.
“The Board of Directors of the Bank of Russia October 30, 2015, has decided to leave its key interest rate at 11.00% per annum, given the persistence of substantial inflation risks. Significant changes in the balance of inflation risks and risks of the economy cooling has not occurred. Taking into account the decision of the moderately strict monetary and credit conditions and weak domestic demand will continue to contribute to the reduction of inflation”, — stated in the message.
Most analysts polled saw the fundamental reason for the reduction in the key rate of the Bank of Russia today: in their opinion, high inflation, coupled with elevated inflation expectations and the weakening of the ruble amid falling world oil prices will keep the Central Bank from sudden movements.
However, the rest of economists did not rule out that the continuing decline of the Russian economy, could cause a cautious easing of the monetary policy of the regulator by 25-50 basis points to spur economic growth.