The Central Bank of Russia's board of directors is taking the pace of inflation and inflation expectations of households business into account and in these conditions it intends to make further decisions on the rate based on the development of the economic situation, CBR Deputy Governor Alexei Zabotkin said in the State Duma.
He said during a meeting of the Duma's Financial Market Committee that the CBR board lowered the key rate to 7.5% at its last meeting on September 16. "I draw your attention to the fact that this is lower than the key rate at the beginning of this year. We started the year with 8.5%. And this is a much faster rate cut than we could allow ourselves after the previous crisis episode in 2015-2017. Then it took almost three years to get the back from 17% to 7.5%. Why were we able to do it more quickly this time? Because price growth and, more importantly, the inflation expectations of households and businesses have been slowing more quickly," Zabotkin said.
"In these conditions, the board of directors intends to reach its next decision on the key rate based on how the economic situation unfolds and the balance of risks to return inflation to the target of near 4% in 2024," he said.
