Russian central bank keeps key rate at 7.75% annually

MOSCOW, Apr 26 (PRIME) -- The board of directors of Russia’s central bank has kept its key rate unchanged at 7.75% annually, the regulator said in a statement on Friday.

“Annual inflation passed the local peak in March and started to subside in April. Consumer prices current growth rates track somewhat below the Bank of Russia forecast. In April, inflation expectations of households rose slightly after a tangible drop in March. Business price expectations continued to decline but remain at an elevated level. Short-term pro-inflationary risks have abated,” the regulator said.

The central bank’s decisions to raise the key rate in September and December 2018 were sufficient to curb the impact of one-time pro-inflationary factors, and annual inflation will return to 4% in the first half of 2020, the authority said.

The central bank may cut the key rate in April–June or July–September 2019. It will take into account inflation and economic dynamics as compared with forecasts, and weigh in risks from external factors while making the decision.

End