Deputy Chairwoman: Cbank has key rate cut plan, continues talks

MOSCOW, Oct 19 (PRIME) -- The central bank has defined decided on the pace of the key interest rate reduction, and the board of directors will consider the plan as well as additional scenatrios at the next meeting, First Deputy Chairwoman Ksenia Yudayeva told reporters on Thursday.

“We have agreed on the pace. We will look at and discuss alternatives,” she said.

The central bank’s board will meet on October 27.

Earlier this week, Igor Dmitriyev, head of the monetary policy department of the central bank, said that the regulator will discuss reduction of the key rate by 0.25 or 0.5 percentage points in October.

In September, the rate was cut by 50 basis points to 8.5% annually.

Yudayeva also said that the regulator is firm about currency regulation and control, but may revise its policy, if similar results may be achieved with other mechanisms.

“The central bank indeed has a firm position on currency controls because for us it is a tool to fight money laundering … However, I think that we are ready to consider proposals to adjust the system without changing the result,” she said.

“I mean that instruments to fight money laundering should still exist. We need them. If the task may be done at a lower cost for businesses, we are ready to consider the alternatives.”

Economic Development Minister Maxim Oreshkin said at a discussion at the New Economic School, also attended by Yudayeva, that Russia’s currency exchange regulation norms are obsolete and that the central bank prevents liberalization of foreign currency legislation and control.

End