|
The
central bank reduced the key rate to 9.25 percent from 9.75
percent, a deeper cut than analysts and economists polled by
Reuters beforehand predicted.
"Given the decision taken and moderately tight monetary policy
sustained, the Bank of Russia forecasts that annual consumer
price growth will reduce to 4 pct before the end of 2017 and
will remain within this target level in 2018-2019," the bank
said in a statement on its web site.
The central bank said it was sticking to its previous plan of
making gradual rats cuts in the second and third quarters of
this year.
Elvira Nabiullina, the central bank's governor, said last week
that the bank would consider cutting rates by 25 or 50 basis
points.
The rouble weakened swiftly to 57.19 versus the dollar before
returning to a level of 57.04. <RUBUTSTN=MCX>.
Despite a slowdown in inflation to 4.2-4.3 percent in late April
from levels of nearly 17 percent seen just over two years ago,
the bank reiterated concerns about inflation and volatility on
global markets.
When making further rate decisions, it said it would take into
account its baseline scenario, which assumes a drop in oil
prices to $40 per barrel by the end of the year.
The central bank is set to hold its next rate-setting meeting on
June 16.
(Editing by Andrew Osborn)
[© 2017 Thomson Reuters. All rights
reserved.] Copyright 2017 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
