Russia’s central bank says keeps key rate at 7.75% annually

MOSCOW, Mar 22 (PRIME) -- Russia’s central bank has kept its key rate at 7.75% annually, the regulator said in a statement on Friday.

“In February–March 2019, inflation amounted to slightly below expectations of the Bank of Russia. Although inflationary expectations of individuals and companies fell significantly in February–March, they are still high. Contribution of higher VAT to annual consumer prices growth has almost finished,” the regulator said.

Short-term pro-inflationary risks shrank, and the regulator has cut its forecast for 2019 inflation to 4.7–5.2% from 5.0–5.5%. it expects inflation to return to a 4% target in the first half of 2020.

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