Central bank says retains key interest rate at 7.25%
MOSCOW, Apr 27 (PRIME) -- The board of directors of Russia’s central bank has retained the key interest rate at 7.25% annually, it said in a statement on Friday.
The bank still plans to move to a neutral monetary policy until the end of 2018 although the potential for further reduction of the key interest rate has decreased.
Weakening of the ruble earlier in April due to rising geopolitical tensions may push inflation to the 4% annual target earlier than expected, but there are still no risks of exceeding the target. Inflation is projected at 3-4% in 2018, and at around 4% in 2019.
On April 6, the U.S. imposed sanctions against 38 Russian tycoons, officials and companies which led to turmoil on the Russian stock and currency markets.