Bank of Russia Eases

September 15, 2017

The fourth central bank interest rate cut of 2017 was made today, but the new policy rate level, 8.5%, still constitutes a “moderately tight stance” according to a released statement. Inflation now is close to the 4% target and well below the policy interest rate level. Furthermore, expected inflation has declined. However, officials do not deem inflation expectations to yet be anchored at the target level and concede that the probability so far of inflation exceeding target still exceeds the likelihood that price inflation falls in line with the baseline forecast. Earlier rate reductions this year amounted to 25 basis points each in March and June flanking a 50-bp cut in April.

Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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