CB admits in 2017, a pause in the reduction of the key rate

MOSCOW, June 16. /TASS/. The Bank of Russia may take a pause in decision-making on the further reduction of the key rate in 2017. This was announced by the Chairman of the Central Bank Elvira Nabiullina at a press conference following the meeting of the Board of Directors of the regulator.

“A pause allowed if risks were to be realized, we have talked about. We have not determined and the step: 0.25 percentage points or 0.5 percentage points, And we assume that we can take pause, and not a single meeting if the assessment of risks, primarily the medium-term risks, shows that the increased likelihood of their implementation,” she said.

Head of the Central Bank noted that the probability of a pause when making decisions about changing the key rate has not increased compared to the previous year. “Probably on the same level”, – said Nabiullina.

In addition, she reported that the Bank of Russia is discussing the possibility of publishing forecasts about the further movement of the key rate.

“We are discussing the possibility, but, in our opinion, before you start publishing such forecasts, whether medium or long,(..) we need to do some outreach and training to this forecast is not perceived as a strong commitment of the Central Bank, that in this corridor we will go,” she said.

The Central Bank takes decisions at a rate based on the current dynamics and forecasts, which may change, she explained. “Before publishing, we need to prepare public opinion to accept such a prognosis. Now working on it,” she said.

On Friday, the Board of Directors of the Bank of Russia took a decision to reduce the key rate by 0.25 percentage points – to 9% per annum. The next meeting of the Board of Directors of the regulator, which will address the issue of the level of the key rate, scheduled for July 28, 2017

The Board of Directors of the Bank of Russia at the March meeting for the first time from September 2016 has decided to reduce the key rate by 25 basis points to 9.75%. Then at the meeting in April, the regulator cut the key rate by another 50 b. . p. to 9.25% per annum, while the experts had expected less rapid easing of monetary policy. Its decision, the Central Bank explained the slowdown of inflation, the value of which is already close to the target level of 4%.