UPDATE: Russian econ minister sees room for cbank key rate reduction

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MOSCOW, Mar 16 (PRIME) -- Russia’s central bank could reduce the key rate at the forthcoming meeting on Friday because inflation is slowing down, Economic Development Minister Alexei Ulyukayev said at a meeting with lawmakers on Wednesday.

“It is clear that there is a significant resource to make a tradeoff to borrowers by decreasing general rates in the economy,” Ulyukayev said.

Russia’s annual inflation amounted to 7.9% as of Wednesday, while it was 12.9% as of the end 2015. “Perhaps (the key rate of) 11% was a sensible step for that inflation. It has fallen by more than 3% by today.”

Ulyukayev confirmed his earlier inflation forecast for 2016 at 7–7.5%.

He also said that the central bank’s key rate can be reduced to a one-digit level but the timespan is unclear so far. “I would not like to specify concrete terms but there is such possibility, undoubtedly.”

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