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The meeting of the Central Bank of the Russian Federation: the key rate and the GDP growth forecast in 2017 have been reduced

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The meeting of the Central Bank of the Russian Federation: the key rate and the GDP growth forecast in 2017 have been reduced

The meeting of the Central Bank of the Russian Federation: the key rate and the GDP growth forecast in 2017 have been reduced
September 16
14:30 2016

The Board of the Central Bank has decided to lower the key interest rate by 0.5 per cent points and it has amounted to 10%.

Most experts believe that the regulator will continue to soften its policy at the September meeting because of the deceleration of the inflation.

The Board of Directors of the Central Bank has lowered the key rate for the second time over the last nine meetings of the Board of the Central Bank.

Statement the Central Bank gave a clear hint regarding the vector of the monetary policy in the near future. The report says: “According to Bank of Russia estimates, it is necessary to maintain the achieved level of the key rate before the end of 2016 with the possibility of its reduction in I-II quarter of 2017 in order to consolidate the trend towards a steady decline in the inflation “.

Among other things, the Central Bank has worsened the forecast of the GDP increase next year to less than 1% according to the results of today’s meeting.

The message from the regulator reads: “The positive quarterly growth of GDP is expected in the second half of this year, but in 2017 the GDP growth will be low – less than 1%. This forecast is based on the conservative prerequisites about the low growth rate of the world economy, the average annual oil price of around $ 40 per barrel and the preservation of the structural limitations of the development of the Russian economy. “

According to the new forecast, the annual inflation in Russia may be equal to about 4.5% in a year, but, nevertheless, the risk that the inflation target of 4% will not be achieved remains at the same level.

“The inflation has significantly declined, which corresponds to the base forecast of the Bank of Russia. It is estimated that the annual growth rate of consumer prices has fallen to 6.6% as of 12 September, 2016 against 7.2% in July, “- said the regulator.

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