The CBR has lowered its key rate from 7% to 6.5% per annum. According to the decision of the regulator’s board of directors, the new key rate will be applied from October 28, 2019.
The CBR said that the key rate cut is associated with a slowdown in inflation, which is faster than previously forecasted. Inflationary expectations also continue to decline. The Central Bank of the Russian Federation expects that by the end of 2019, the inflation rate will be 3.2–3.7%. In the future, annual inflation will remain near 4%.
The regulator also notes that with the development of the situation in accordance with the basic forecast, a further reduction in the key rate at one of the next meetings of the Board of Directors is not ruled out.
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 December 13, 2019.
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.