Bank of Russia will reduce key rate to 9.75 percent per annum
UFA, 24 March 2017. /Bashinform News Agency, Olga Murtazina/.
The Central Bank will reduce the key rate to 9.75 percent per annum since March 27, the bank's press service reports. This decision was made by the Board of Directors of the Central Bank today, on March 24. The released report notes that the inflation slows down faster than forecasted. There is also a reduction in inflation expectations and restoration of economic activity. Inflation risks, although they have decreased, still remain at an increased level. Under these conditions the target inflation rate of 4 percent will be reached before the end of this year under condition of maintaining moderately tight monetary policy.
In December 2014, due to the financial crisis and sharp fall of the ruble, the Central Bank raised the key rate to 17 percent per annum, having gradually brought it to 11 percent in 2015. In September 2016, the rate fell from 10.5 to 10 percent.
The key rate is an indicator by which the Bank of Russia issues loans to commercial banks. The key rate directly affects the interest on loans for individuals, as well as the level of inflation in the country.