On 28 April 2017, the Bank of Russia Board of Directors decided to reducethe key rate to 9.25% per annum (9.75% previous). The Board notes that inflation is moving towards the target, inflation expectations are still declining and economic activity is recovering. At the same time, inflation risks remain in place. Given the moderately tight monetary policy, the 4% inflation target will be achieved before the end of 2017 and will be maintained close to this level in 2018-2019.
In making its decision on the key rate, moving forward, the Bank of Russia will assess the probability of the baseline scenario implementation (where oil prices drop to $40 per barrel) and the scenario with rising oil prices, alongside with assessing inflation and the economy dynamics relative to the forecast. The Bank of Russia’s assessment of the overall potential of the key rate reduction before the end of 2017 is unchanged.
In making its key rate decision, the Bank of Russia was guided by the following assumptions. > Clik here for details