The head of the Central Bank of the Russian Federation, Elvira Nabiullina, said during a meeting of the Board of Directors of the Bank of Russia, that the key rate could be reduced to a neutral level (6-7%) in 2020.
Recall, on March 22, 2019, the CBR decided to leave the key rate at 7.75% per annum. At the same time inflation forecast has noticeably improved. According to the latest estimates, the inflation rate will be 4.7–5.2% at the end of 2019 and will return to 4% in the first half of 2020.
“If the situation develops further in accordance with our basic forecast, this will give us the opportunity to consider the issue of transition to a reduction in the key rate a little earlier than we expected in December last year. We assume that this will happen in 2019” – said Elvira Nabiullina.
At the same time, the head of the Central Bank clarified that the decision on the key rate is always made taking into account the dynamics of inflation and various risks.