The Central Bank kept its key rate at the level of 10.5%

The Central Bank kept its key rate at the level of 10.5%


Moscow. July 29. Expected the Central Bank kept its key rate at the level of 10.5%.

Rate remains constant up to the seventh of their last eight meetings. The only exception to the previous tip, when the Central Bank cut rates by 50 b.p.

Most analysts before the meeting were of the opinion that the Central Bank will resume a pause in easing policy.

In a statement, the Central Bank maintained the signal of the likelihood of further rate cuts in the “non-binding” wording without any time commitments.

The Bank of Russia notes that the dynamics of inflation and the emerging recovery of economic activity mainly correspond to the baseline forecast of the Bank of Russia, however, the decline in inflation expectations came to a halt. The decision and further maintaining a moderately tight monetary policy will contribute to achieving inflation target, says the regulator.

“The Board of Directors notes that the dynamics of inflation and the emerging recovery of economic activity mainly correspond to the baseline forecast of the Bank of Russia. However, the decline in inflation expectations came to a halt. The decision and further maintaining a moderately tight monetary policy will contribute to achieving the inflation target. According to the forecast of the Bank of Russia, the annual growth rate of consumer prices will amount to less than 5% in July 2017 and will reach the target level of 4% at the end of 2017. The Bank of Russia will consider the possibility of further reduction of the key rate, assessing the risk of inflation and compliance with the dynamics of the deceleration of inflation forecast trajectory”, – said in the press release of the regulator.

The next meeting of the Board of Directors of the Bank of Russia, which will address the issue of the level of the key rate, scheduled for September 16, 2016. The time of publication of the press release about the decision of the Board of Directors of the Bank of Russia – 13:30 Moscow time.

At the previous meeting on the tenth of June, the Bank of Russia lowered the key rate by 50 b.p. – to 10.50% per annum.

At the meeting, which took place on 29 April, the Board of Directors of the Bank of Russia kept its key rate at 11%, given the persistence of significant inflationary risks.