Baku. 2 February. REPORT.AZ/ Central Bank of Russia is planning to soften its monetary policy. Report informs citing the Gazeta.ru, the Head of the Central Bank of Russia, Elvira Nabiullina said.
She said that Bank of Russia may shift to neutral monetary policy. Experts believe that the words of Nabiullina mean that the discount rate will be reduced to 6-7%. While the Russian Bank targets this level by mid-2019, it will reach the target more quickly. In the near future, experts think rate will be reduced by 0.5 percent. Notably, at present the figure makes 7,75%.
Nabiullina said that inflation rate is 4% when discount rate is at 6-7%. However, it should be taken into account that inflation in Russia has made 2.5% by the end of 2017.
Analytical Group of Report News Agency believes, Central Bank of Azerbaijan (CBA) would start to decrease discount rate. Notably, at present, discount rate in Azerbaijan makes 15%, with upper limit of 18% and lower at 10%. After the announcement of January inflation, the CBA is likely to reconsider its discount rate.