Russian Monetary Policy Left Unchanged

March 18, 2016

After keeping the 11.0% policy interest rate unchanged, Russian monetary policymakers released at statement that called the policy stance “moderately tight” and noted a drop in on-year CPI inflation from 15% in November to 8.1% last month.  Officials surmise that “monetary policy may remain moderately tight over a longer period of time than expected” but express confidence in a downtrend of inflation during 2016-17.  “Weak domestic demand will be the main factor behind the inflation decline in 2016-2017. Slower consumer price growth will also be based on cuts in producer costs, moderate global food price dynamics and tentative decline in inflation expectations. The annual consumer price growth will reduce to 7% in 2016, to reach the 4% target by late 2017.”

Copyright 2016, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.


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