Russia: CBR leaves policy rate unchanged at 7.75% as expected

Eren Sengezer FXStreet

At its March meeting, the Central Bank of the Russian Federation has decided to keep its key policy rate unchanged at 7.75% as expected.

Key takeaways from the press release

Since the beginning of this year, monetary conditions have not seen significant changes.
The economy is close to its potential.
Short-term pro-inflationary risks have abated.
Elevated and unanchored inflation expectations also pose a meaningful risk.
The Bank of Russia leaves mostly unchanged its assessment of risks associated with wage movements, possible changes in consumer behaviour and budget expenditures.
The Bank of Russia will take into account inflation and economic dynamics against the forecast, as well as risks posed by external conditions and the reaction of financial markets.
- 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 2019.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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