CBR at the next meeting will not consider a rate hike

Moscow. July 13. INTERFAX.RU – the Board of Directors of the Bank of Russia on the 28th of July will be to consider increasing the key rate, despite the rise in inflation in June.

“I can say that we are not considering a rate hike,” said Bank of Russia Chairman Elvira Nabiullina at a briefing in the framework of the IFC-2017, answering the question of how the June surge in inflation will affect what options the rate changes will be considered by the Board of Directors at the next meeting.

However, she noted that the Central Bank has no plans to give the market before the meeting any guidelines on the direction of rate changes.

“We don’t call it guidance. This is not a rule to give such comments. We sometimes, indeed, it is necessary to communicate between meetings of the Board of Directors. We once gave what is called guidance, some of our promises, this was in September last year, when we saw that market expectations seriously deviate from our expectations. So we did, to adjust market expectations, did it to, when we make the decision, it did not lead to some serious turbulence in the market, our solutions to were in the area of expectations,” said she.

However, as noted by the Chairman of the Central Bank, “every time we discuss decisions by the Board of Directors, we really discuss it, we discuss the factors that influence decision-making, the state of the economy, inflation, our forecasts for the economy, inflation, labour market”. “We now don’t see any deviation in waiting for the market to understand the market perspectives from our” – said Nabiullina.