Central Bank of Russia

March 23, 2018

The Board of Directors of the Russia’s central bank lowered the one-week repo rate another notch to 7.25% from 7.5% and served further notice in a released statement that they intend to “continue to reduce the key rate and will complete the transition to neutral monetary policy in 2018.” Officials noted that “annual inflation remains sustainably low” and predicted that “the slowdown of annual inflation may continue in the first half of 2018.” Set against a target of 4%, inflation is now at 2.2%. Regarding growth, the statement says, “activity resumed in early 2018, following the decline due to temporary headwinds in late 2017.”

The repo rate has been reduced by a cumulative 275 basis points. Prior to today’s decision, the most recent four incremental declines were 50 basis points last September, 25 bps in October, 50 bps in December and 25 bps last month.

Copyright 2018, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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