The CBR has lowered its key rate from 6.25% to 6.00% per annum. The corresponding decision was made today by the board of directors of the financial regulator. The new key rate will be applied from February 10, 2020.
According to the CBR, the decision to lower the key rate is due to the fact that inflation slowdown is faster than predicted. The inflationary expectations of the population and the price expectations of enterprises as a whole remain stable. The growth rate of the Russian economy increased in the second half of 2019. Moreover, according to the forecasts of the regulator, annual inflation will amount to 3.5–4.0% according to the results of 2020 and will remain near 4% in the future.
The CBR also allows for the possibility of further lowering the key rate at the next meetings. 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 March 20, 2020.