Russian Central Bank retains key rate

Baku. 29 July. REPORT.AZ/ Board of Directors of Bank of Russia on the results of Friday’s meeting have decided to keep the key rate unchanged at 10.5%.

Report informs, the statement of the Centrak Bank of Russian (CBR) says.

"The dynamics of inflation and revival of economic activity mainly correspond to the baseline forecast of the Bank of Russia. However, decline in inflation expectations stopped. The adopted decision and further preservation of moderately tight monetary policy will contribute to achieving the inflation target”, the statement says.

The next meeting of the Board of Directors of the Bank of Russia, which will consider the issue of the key rate level is scheduled for September 16. Notably, the key rate was at 11% in August 2015 and only at in June 2016 meeting, the regulator decided to reduce it to 0.5%.

Experts are inclined to the fact that the regulator will keep rates at the current level, as this may affect the dynamics of the currency market. Also, experts noted the uncertainty of fiscal policy. According to experts, reducing rates by 50 basis points will happen in September.