Russian Q3 GDP better than forecast, cbank can cut key rate

MOSCOW, Sep 10 (PRIME) – Russia’s dynamics of gross domestic product (GDP) is faring better in July–August than expected by the central bank, Deputy Chairman of the Central Bank Alexei Zabotkin said on Thursday, adding that the authority does not rule out a further decline of the key rate.

"The data for July–August showed that the growth dynamics was in general, let's say, better than expectations. But taking into account the fact that there are indeed many factors both on the side of demand -- and this is an important factor, budget support and other government measures -- and on the side of supply, it is too early to say how this data will influence our forecast, to which side,” Zabotkin said at a forum.

"The central bank will continue to consider the necessity of a further key rate reduction, but also the time of fulfillment of … softening the monetary policy under the basic scenario as well. I emphasize, the need …will be to a great extent defined by information about the Russian economy, the inflation trajectory and the situation with the external environment."

Zabotkin also said that inflation is to slow down in October–December. The current seasonally adjusted price growth amounts to about 4%, he said.

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