Central bank chairwoman sees room for further key rate cut
MOSCOW, May 22 (PRIME) -- The Russian central bank has potential to reduce the key rate further, Chairwoman Elvira Nabiullina said at a press conference on Friday.
"As disinflation tendencies dominate in the future, the Central Bank of Russia has room for further easing of the monetary policy," Nabiullina said.
She said that acceleration of price growth due to the ruble weakening has been exhausted.
"Concerning inflation, the price growth acceleration, which seems connected with the weakening of ruble and a temporary increase of demand for first-priority goods, is exhausted. Inflation was about zero last week and annual inflation was stable at a bit higher than 3% for the last two weeks," Nabiullina said.
Nabiullina said that duration of temporary pro-inflation factors turned out to be smaller than the central bank expected in April.
She also said that the retail loan portfolio of Russian banks decreased by 0.4% from May 1 until May 19.