Gref: there are chances for the rate decrease in September
Herman Gref is a president of Sberbank, which is the largest state bank in Russia. He believes that there are chances for lowering the key rate in September provided that the inflation continues to slow down.
“If the inflation is down – there are chances …”, – the head of the bank said to the media.
The meeting of the Board of Directors of the Bank of Russia is scheduled on 16 September. It will be devoted to the issue regarding the interest rate policy. Also, the Central Bank has scheduled the publication of updated forecasts on the same date.
Reuters asked the Bank of Russia whether the refusal for the pension re-indexation in the current year would have the beneficial impact on the Central Bank’s inflation forecasts. Also, the agency wanted to know if the refusal would increase the possibility of the policy easing in September.
The answer was:
“Indexing is not an obstacle to achieve the purpose of the monetary policy – low and stable inflation … The government’s decision on lump sum payment to pensioners is not the basis for the inflation forecast reconsideration. And it does not create additional risks to achieving the inflation target -4% in 2017”.