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Saturday, November 18, 2017

Central Bank for the first time in 10 months cut the key rate

The Bank of Russia at its meeting decided to reduce the key rate by half a percentage point to 10.5%. Recall that the key rate will not decrease from August 2015.

photo: Gennady Cherkasov

This year, it’s been four meetings of the CBR’s interest rate. On three previous controller did not dare to decline. We will remind that last time the rate was reduced to 11% in August last year, followed by the Central Bank to loosen monetary policy did not go, fearing a negative impact on the economy.

Today, however, on June 10 the Board of Directors of the Bank of Russia noted that in the area of inflation, there have been positive processes, reduced inflationary expectations and the background of the entry of the economy into a phase of recovery growth inflation risks are not so high.

Previously, many experts and analysts predicted such a step the Bank of Russia. This can lead to revival of crediting of the enterprises, which promotes the growth of GDP. By the way, according to the regulator, restoration quarterly growth is expected no later than the second half of 2016.

As for oil prices, the Central Bank of the Russian Federation for the next three years, cautiously predicts an average price for oil around 40 dollars per barrel.

In 2017, according to the regulator, it will be possible to expect growth of the GDP by 1.3%. However, in subsequent years a marked increase in the rate of growth in the Central Bank still do not expect.

Rising prices and a falling ruble. Chronicle of events

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