For the third year, the Central Bank lowered the key rate to 9%

The Bank of Russia following the meeting of the Board of Directors announced the reduction of the key rate by 0.25 percentage points, to 9 percent per annum. Thus the regulator for the third time this year took the decision to mitigate monetary policy.

photo: Natalia Muslinkina

“To maintain inflation close to the target values of 4%, the Bank of Russia will further moderately tight monetary policy”, – stated in the message on the website of the regulator.

The Bank sees room to cut key rates in the second half of 2017. Further, taking a decision, the Central Bank will proceed from the assessment of inflation risks, inflation dynamics and Economics in relation to the forecast.

This is the third reduction of the key rate this year. So, at the end of the April meeting, the regulator lowered the rate by 50 basis points and in March by 25 basis points.

After the Friday decision of the Central Bank, the ruble slightly strengthened growth, the dollar and the Euro, according to the auction. The experts believe that fundamentally nothing will change. “Course not it responds to significant fluctuations of oil, so I don’t think he actually will react,” said RBC the macro analyst of Raiffeisenbank Stanislav Murashov.

Read the story: the Ruble collapse in July: the fed and the Central Bank have tried together

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