The CBR again gave the signal of the imminent reduction in the key rate

The CBR again gave the signal of the imminent reduction in the key rate


With the slowdown of inflation in line with forecast and subject to the weakening of inflationary risks the Bank of Russia will resume the reduction of the key rate on one of the next meetings of the Board of Directors, said the CBR.

MOSCOW, 11 Dec. The Bank of Russia, on Friday keeping key rate at 11% per annum, in its press release, again gave the signal of the imminent monetary policy easing.

“With the slowdown of inflation in line with forecast and subject to the weakening of inflationary risks the Bank of Russia will resume the reduction of the key rate on one of the next meetings of the Board of Directors,” notes the regulator.

This signal first appeared in the press release of the Central Bank following the meeting of the Board of Directors on interest rate policy on 30 October, when it was also decided not to change its key interest rate.

Interviewed analysts speculated that the Bank of Russia in December will have to delay the easing of monetary policy due to a number of factors: the restrictive measures of Russia against Turkey, larger repayment of external debt, the rapid decline in world oil prices and persistently high inflation expectations.