Photo: Konstantin Kokoshkin / “Kommersant”
The Bank of Russia took a decision to lower the key rate by 0.25 percentage point to 4.25 percent, according to a statement on the regulator’s website.
This is another historic low. In recent months, the Central Bank Chairman Elvira Nabiullina has said repeatedly not only on the further rate reduction, but also on the possible acceleration of this process.
As stated in the press release, the Board of Directors considered it appropriate to continue to ease amid a significant disinflationary impact of the factors causing the danger not to reach the target inflation of four percent. On 20 July, annual inflation was about 3.3 percent.
The current rate reduction was the fourth since the beginning of 2020. Before the meeting, most analysts agreed that the regulator will continue easing, but did not rule out more ambitious solutions. In January, the main indicator of the monetary policy of the Central Bank amounted to 6.25 percent.
The next meeting of the Board of Directors of the Central Bank, which can change the key rate, scheduled for September 18.
Earlier, the billionaire Oleg Deripaska criticized the policy of the Central Bank, asking him to stop “dancing with a tambourine” around the key rate. He called for a continued effort to reduce the option to print trillions of rubles, and to publish final Bank rates for major loan products in the Russian economy.
Video, photo All from Russia.