Regulatory Announcements

The Bank of Russia Cuts the Key Rate by 25 bp to 7.00% Per Annum

On 6 September 2019, the Bank of Russia Board of Directors decided to cut the key rate by 25 bp to 7.00% per annum. Inflation slowdown is continuing. At the same time, inflation expectations remain elevated. The Russian economy’s growth rate is still coming in lower than the Bank of Russia’s expectations. Risks of a global economic slowdown have increased. Risks of inflation accelerating or slowing down by the year-end are balanced. In these circumstances and taking actual inflation dynamics into account, the Bank of Russia has lowered its end-of-year annual inflation forecast for 2019 from 4.2-4.7% to 4.0-4.5%. Moving on, according to the Bank of Russia’s forecast and taking into account the monetary policy stance, annual inflation will remain close to 4%.

If the situation develops in line with the baseline forecast, the Bank of Russia will consider the necessity of further key rate reduction at one of the upcoming Board of Directors’ meetings. In its key rate decision-making, the Bank of Russia will take into account actual and expected inflation dynamics relative to the target and economic developments over the forecast horizon, as well as risks posed by domestic and external conditions and the reaction of financial markets.