The Central Bank of the Russian Federation with latest policy change 27 Oct
- move to neutral policy will be gradual
- The Board notes that inflation holds close to 4%. Its downward deviation against the forecast is driven mainly by temporary factors.
- The economy continues to grow.
- Inflation expectations remain elevated. Their decline has yet to become sustainable and consistent. Medium-term risks of inflation overshooting the target dominate over the risks of its persistent downward deviation. In recognition of this, the Bank of Russia’s ongoing transition from moderately tight to neutral monetary policy is gradual.
- Bank of Russia’s estimate of the economic development path throughout 2017 and in the medium term has remained unchanged.
Moving forward, the Bank of Russia’s key rate decisions will be based on its assessment on the balance of risks for inflation significantly and persistently deviating in either direction from the target, as well as consumer price movements and economic activity against the forecast. The Bank of Russia Board of Directors leaves open the option of further rate reduction at its upcoming meetings.
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