Bank of Russia maintains key interest rate at 10 pct

The Bank of Russia Board of Directors, today, decided to maintain the key interest rate at 10 percent. According to the Board of Directors, the dynamics of economic activity and inflation are consistent with the projection, while inflation risks have eased slightly. Consumer price growth is easing partially due to temporary factors, while reduction in inflation expectations continues to be unstable.

Given today’s decision and considering that the moderately tight monetary policy is maintained, inflation is expected to decelerate to the 4 percent target by the end of next year, according to the Bank of Russia’s policy meeting statement. As the trend towards a sustainable fall in consumer price growth takes root, the Russian central bank would consider an opportunity of lowering the key rate in the first half of next year.

The Bank of Russia would be assessing the risks of inflation, along with the alignment of inflation dynamics and economic performance with the baseline forecast while making its key rate decisions in the coming months, according to the central bank meeting statement.