Russian cbank cuts key rate to 9.25% annually from 9.75%

MOSCOW, Apr 28 (PRIME) -- The board of directors of Russia’s central bank cut the key rate to 9.25% annually from 9.75% as inflationary expectations fall and economic activity rises, the regulator said in a statement on Friday.

“The board of directors registered a slowdown of inflation to the target level and a continuous decrease of inflationary expectations, as well as restoration of economic activity,” the central bank said.

“At the same time, inflationary risks persist. In conditions of a moderately tough monetary policy the inflation target of 4% will be reached before the end of 2017 and maintained close to this level in 2018–2019.”

In future, while making decisions on the key rate, the authority will take into account the ratio of probability of the oil price fall to U.S. $40 per barrel or rise, inflation dynamics, and economic development compared to the forecast.

“Still, the estimate of the Bank of Russia of a possible general scale of contraction of the key rate until the end of 2017 has not changed,” the statement read.

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