Under its baseline scenario, the Russian Central Bank plans to complete its monetary easing cycle by mid-2020, the bank chairwoman Elvira Nabiullina said.
At its last board meeting in June, the central bank considered holding the key rate and cutting it by 50 basis points but eventually trimmed it by 25 basis points to 7.50%, Nabiullina said.
"Other things being equal, we are trying to move in moderate steps for the economy to adapt to our new decisions," Reuters cited her as saying.
She added that Russia’s monetary policy will become neutral once the key rate reaches a range of 6% to 7%.
"We have tools to mitigate the implications of spikes in volatility for financial markets and the economy," the Russian Central Bank chairwoman said.
