Kudrin made a reduction of the key rate of the Central Bank to 8.5%

Until the end of 2017 key rate of the Central Bank can be reduced to 8.5 percent, says former Russian Finance Minister and now head of the Center for strategic research (CSR) Alexei Kudrin.

The former head of the Ministry of Finance supported adopted Friday by the Board of Directors of the Bank of Russia reduced the key rate by 0.5 percentage points — from 9.75 to 9.25%.

“I think it’s a very rational step. It is a Mature solution, 0.5 percentage points is not much and not enough. If inflation will stand and the balance of payments will be more or less stable, unless the sharp fluctuations in oil prices, this rate may until the end of the year to fall to 8.5%,” — said Kudrin.

The Central Bank reduced the key rate is explained by the slowdown of inflation on the background supported by relatively high world oil prices, the strengthening of the ruble.

“The Bank of Russia, taking into account the adopted decisions and maintain a moderately tight monetary policy the annual rate of consumer price growth will decline to 4% until the end of 2017 and will be maintained close to the specified target level in 2018-2019 years”, — stated in the message of the Central Bank.

The document emphasizes that in the future when making decisions about the level of the key rate of the regulator will take into account “the ratio of the probabilities of the implementation of the baseline scenario (decrease in oil prices to $40 per barrel) and a scenario with rising oil prices” and the future dynamics of inflation.

The next meeting of the Board of Directors of the Central Bank, which can be made the decision to change the key rate, scheduled for June 16, 2017.