Russia’s central bank announced on Friday left its policy rate unchanged at 4.25% but noted that it will consider the possibility of further rate cuts.
Additional takeaways from the policy statement
"Inflation seen at 3.7-4.2% in 2020. In 2021, it will be close to 4%."
"Growth of prices slightly above forecast."
"If the situation develops in line with the baseline forecast, the Bank of Russia will consider the necessity of further key rate reduction at its upcoming meetings."
"This is driven by two key factors: an active recovery of demand after the lockdown as well as the weakening of the ruble on the back of generally increased volatility in global markets and higher geopolitical risks."
"Inflation expectations of households and businesses remain elevated."
"Although the effect of short-term proinflationary factors has strengthened, disinflationary risks still prevail in the medium run."
"As the stage of lively recovery growth owing to restriction lifting and support measures complete, the pace of return of the global and Russian economies to their potential will slow down."
"This will have a constraining effect on price growth rates."
"In its key rate decision-making, the Bank of Russia will take into account actual and expected inflation dynamics relative to the target and economic developments over the forecast horizon, as well as risks posed by domestic and external factors.
The USD/RUB pair's reaction was largely muted and it was last seen losing 0.17% on the day at 75.0785.
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.