The Central Bank has kept its key rate at 10%

The Central Bank has kept its key rate at 10%


Moscow. 28 Oct. The Bank of Russia decided to keep key rate at 10% per annum, said in a press release following the meeting of the Board of Directors of the regulator.

“The Board of Directors notes that the dynamics of inflation and economic activity generally consistent with the forecast. A substantial contribution to the slowdown in consumer prices bring temporary factors, and the decline in inflation expectations remains fragile”, – stated in the message of the Central Bank. Noting that “a significant contribution to the slowdown in consumer prices bring temporary factors, and the decline in inflation expectations remains fragile,” the Central Bank reiterated that to consolidate the trend towards a sustainable reduction of inflation “necessary to maintain the current level of the key rate until the end of 2016, with the possibility of its reduction in I-II quarter of 2017”.

In a statement the Central Bank States that in the IV quarter of 2016 is expected a slight positive quarterly growth in GDP. While the Central Bank continues to see risks that inflation will not reach the target level of 4% in 2017.

The decision of the Bank of Russia was expected, most analysts predicted that the key rate should be maintained at 10%. 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 December 16.

Source