Russia: CBR keeps policy rate unchanged at 7.75%, hints at possible rate cut in Q2/Q3
|The Central Bank of the Russian Federation (CBR) has recently announced that it kept its policy rate unchanged at 7.75% in a widely expected decision. Below are some key takeaways, via Reuters, from the CBR's monetary policy statement.
- If the situation develops in line with the baseline forecast, the Bank of Russia admits the possibility of turning to cutting the key rate in Q2-Q3 2019.
- Annual inflation passed the local peak in March and started to subside in April. Consumer prices current growth rates track somewhat below the Bank of Russia forecast.
- In April, inflation expectations of households rose slightly after a tangible drop in March.
- Annual inflation will return to 4% in the first half of 2020.
- Consumer prices current growth rates tend to be somewhat below the Bank of Russia’s forecast.
- VAT increase pass-through to prices has largely materialised.
- Consumer demand trends constrain inflation.
- Temporary disinflationary factors contributed to slowing consumer price growth, among those ruble appreciation since the beginning of the year.
- Monetary conditions have seen no significant changes since the last board meeting.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.