The Central Bank of the Russian Federation has lowered its key rate from 6.5% to 6.25% per annum. According to the decision of the regulator’s board of directors, the new key rate will be applied from December 16, 2019.
The CBR said that the key rate cut is associated with a slowdown in inflation, which is faster than previously forecasted. Inflationary expectations of the population continue to decline. The price expectations of enterprises as a whole have not changed. At the end of 2019, the CBR predicts inflation in the range of 2.9–3.2%. The growth rate of the Russian economy in the III quarter increased, but it is still difficult to assess their sustainability. The risks of a significant slowdown in the global economy also remain.
The next meeting of the Board of Directors of the Central Bank of the Russian Federation, which will consider the issue of the key rate level, is scheduled for February 7, 2020.
Recall, on June 14 of this year, the Board of Directors of the Central Bank of the Russian Federation lowered its key rate from 7.75% to 7.5% per annum. At 7.75%, the key rate has been maintained since December 17, 2018. In July 2019, the Central Bank of the Russian Federation lowered its key rate from 7.5 to 7.25% per annum. Since September 9, the CBR has lowered its key rate from 7.25 to 7% per annum. Since October 28, 2019, the key rate has been reduced to 6.5%.