Central Bank of Russia kept the key interest rate unchanged

The Central Bank of Russia remained the key interest rate unchanged at level of 10%. The central bankers consider that the inflation and economy activity in the country are in relation with the forecasts, so there is no need of additional decreases of the rate until the end of the year. However, the Central Bank of Russia will consider decreasing once again the key interest rate by 0.50-0.75% in the beginning of 2017, if the current economy trends remain.

“The dynamic of inflation and economy activity in the country are in relation with the forecasts. Significant contribution to the slower growth of domestic prices have temporary factors, while the inflation expectation remain unstable. For strengthening of the trends of steady inflation decrease is necessary to keep the current level of interest rate until the end of 2016 with possibility for decrease in the first half of 2017”, says the official statement of the Central Bank of Russia.

During the third quarter of 2016 is expected slower GDP growth. The central bankers continue to see risks for reaching the target level of inflation set at 4% in 2017. The growth of the Russian economy in 2017 is expected to be around 1-1.5%.

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