Central Bank of the Russian Federation Leaves Policy as Is

April 27, 2018

Breaking a streak of five straight reductions of the key central bank between last September and March and totaling 175 basis points, the Bank of Russia Board of Directors agreed to leave such unchanged at 7.25% at today’s review. A released statement said that CPI inflation of 2.4% last month was still low but that recent geopolitically related ruble depreciation will likely lift inflation above 3% by the end of this year and to around 4% in 2019. Officials anticipate running a more neutral policy stance this year and believe “the estimated neutral interest rate has shifted closer to its upper bound within the range of 67%.” The next scheduled policy review is scheduled for mid-June.

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



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